I have friends who home-schooled their 2 boys until high school. The boys went to public school high school to participate in sports and because the curriculum is more advanced and there are more options and opportunities in the school.
I have known these boys their entire lives and they are wonderful kids (young adults, one is now in college, the other in HS). Another contributing factor is they were raised without TV, and they have great parents.
Here is what I observed. To do this well, you have to be really committed. It doesn't necessarily take a full 8 to 3 commitment, because there is a lot of wasted time in schools. But, you must be dedicated and figure out a routine that fits your schedule, a routine is necessary, they will need to do homework, it will just be different than what they get in the school.
If you are having discipline issues or personality conflicts between you and your child, you get no break while they are at school, because they are with you 24/7 (and these can happen between the sweetest, most well-behaved child and their parent, at times).
You still want your children to socialize with other kids, this is an important part of their development (even if it carries the risk of adding all those bad influences you are trying to avoid). You can add this socialization through sports or club activities, or possibly just through your neighborhood.
When your kids do eventually attend school (high school, college, etc.) they are going to be in for a shock. The 2 boys I know played with a lot of the kids from the school system growing up, they had great relationships with these kids, in both one on one, and small group levels. Then, they went to 8th or 9th grade, and these same kids that were wonderful to them outside the school, were mired in the various cliques and social structure of the schools and behaved MUCH differently in the school. The boys had never dealt with those social ills, and it took awhile to learn how to deal with this. It was nice they were able to avoid it as long as they did, but it was a big adjustment for them. And these bad social behaviors don't go away when you enter the work force.
One of the nice things home-schooling does allow you is the flexibility to travel and see the world (assuming you or your husband's jobs allow for this). You don't have to worry about pulling your kids out of school to go on vacation.
To sum up, yes homeschooling does produce wonderful children, but it involves a real commitment from the parents. Also, the boys I know went to public high school, so either the homeschooling or the involved parenting gave them the foundation to resist the peer pressure and the drugs, but I'm sure they were probably exposed to it (and from what I witnessed growing up, there is as much or more peer pressure and drug use in private schools as public).
Pick an area to live that has the best school system you can find, this will give you more options for your kids education. Homeschooling definitely has benefits, but it's not without flaws either. The same is true of private schools, plus they can be costly, and they are not all equal education-wise, there are average public schools that still provide a better education than some private schools.
The more involved you are in your kids lives, the better they'll grow up to be.