Pros and Cons of Living in Sitka:

Pros:
Beautiful scenery.
Great fishing (Halibut, King Salmon, Coho, Sockeye, etc) (fast access to many boat launches)
Wildlife viewing (Whales, Sea Otters, bald eagles and more)
Hunting, shrimping and crabbing too!
Many places to hike. Sitka Trail Works
Small town atmosphere. (friendly people for the most part)
You are close to everything. You can walk to ride a bicycle in a timely manner. Better bring your rain gear just in case


Cons:
Housing can be a real issue. Especially if you have pets. The market gets real tight in the summer.
Rain and lots of it. If you are not used to a damp climate it could be a culture shock for you.
Food is tad higher than what most people are used to. (if you are a good shopper you can hit the good deals)
It is possible to get Island Fever if you don't get off Sitka once in awhile. Make friends with someone with a boat ;)

This list is my personal views. Feel free to add your favorite pros and cons to living in Sitka.