It is of course a personal decision, and for some people a longer commute might be fine. However, for the average human a long commute will contribute negatively to happiness.
Here's nice article from 2004, "Stress That Doesn't Pay: The Commuting Paradox":
http://ideas.repec.org/p/zur/iewwpx/151.html
"People spend a lot of time commuting and often find it a burden. According to economics, the burden of commuting is chosen when compensated either on the labor or on the housing market so that individuals’ utility is equalized. However, in a direct test of this strong notion of equilibrium, we find that people with longer commuting time report systematically lower subjective well-being."
In a data set spanning 14 years, we study whether commuters are indeed compensated for the stress incurred, as suggested in economic models. If this is the case, we should not find any systematic correlation between people’s commuting time and their reported satisfaction with life.
Our main result indicates, however, that people with long journeys to and from work are systematically worse off and report significantly lower subjective well-being.