The thing about commuting is that it seems acceptable untill you experience life without the commute. I use to live in sydney and say 'i only drive 35 minutes to work against the traffic and only 17 sets of traffic lights'.
I now live 15 minutes from Wanaka in NZ and am home at 5:15pm. or at the crag at 5:20 or mtbing at 5:10 , ski every weekend in winter, paraglider every weekend in summer with no more than a 45 minute drive. There is no comparison for it, commuting sux. I had to laugh the first time i got stopped by sheep on the road or got held up at one of the two one lane bridges on the way to work.
Who are you kidding when you say, "its only 1:40 minutes to Black heath" like it is just up the road. 4 hours lost every time you go there and $50 (or more) in fuel.
As Jon Muir put it so sucsincly(?) "4 million people can be wrong"
Put a nominal $$ value on your time lost and add the transport costs and still try and tell me you are saving $$. And it is hardly environmental friendly or sustainable.
I love the bluies and would chose to live in Blackheath of any BM town. Both for climbing and community but wouldnt commute past penrith (and who would want to work in penrith). If i was to live in sydney and work in town i would live at manly and commute by ferry or similar.
In general the public transport in Sydney is terrible.
If you are serious about recaliming your lifestyle move somewhere you want to play and find a job as close as possible. dont kid yourself that a 2hour cummute is OK.