I've lived much of my life far from family. I figured they could visit me if they wanted (I often lived in beautiful or interesting locations). Only my daughter came.
When I chose to live near my daughter, we didn't see each other often, so I decided that was pointless.
My "dream retirement location" would include an active social life. So yes, I'd choose that over living in a boring city near my relatives.
I did live on a beautiful island near 2 of my siblings, so that was the best of both worlds. I had to leave there, for reasons that had nothing to do with any dreams.