Clearly, this thread needs more balance, so...
1. I've lived in both Austin and L.A., and Austin isn't even in the same UNIVERSE as L.A. when it comes to traffic. Ditto NYC, D.C., or even Houston and Dallas. Austin traffic is terrible at rush hour, about two hours or so each morning and evening, and during its ever-increasing number of "event weekends" (COTA, SXSW, ACL, any UT home game, etc.).
2. Housing-wise, Austin is pricey and getting more so by the week, but again: not even remotely in the same league as NYC, D.C., L.A. or SF. One of my friends recently moved there from Manhattan, and after paying nearly $2K a month for a shitty walk-up studio, she was flat-out shocked to find a cute, renovated 2BR duplex for $1,100/month in Central Austin. Still, if you want to buy a place, expect to pay $400K-$500K for a renovated 2BR bungalow near downtown.
3. R120's info is about a decade out of date. "Old" East Austin, the area immediately east of I-35 and downtown, is being gentrified beyond recognition. Housing prices are rapidly escalating, though it's still cheaper than west of the interstate, and the Hispanic and black communities that lived there are being forced out, as is pretty much always the case with gentrification. All of the old Tejano bars are being converted into "hipster" dive bars, and the drug dealers and hookers in "crack ho" central along E. 11th and E. 12th has been forced out. Granted, you can still find seedy parts in the area, particularly around its numerous housing projects, but for the most part blacks and Hispanics have relocated to Northeast and Southeast Austin. But yes, Austin is definitely segregated, although it's mostly *intentional* self-segregation, and the city is nowhere near as segregated as the two supposed liberal meccas of Los Angeles and NYC (the second-most segregated city in the U.S., behind Milwaukee).
4. North Austin, the area R25 describes, has grown the most in the past decade. A freeway that used to dead-end just past Central Austin (MoPac) has now been extended 15 miles out to the suburbs in Round Rock, where Dell is headquartered, and about half of it is a toll road. To me it looks almost indistinguishable from the nicer parts of Orange County: all chain stores, "luxury" apartments and overpriced tract houses. OTOH it's only a "parking lot" during Austin's comparatively short rush hour, and again, not even in the same league as SoCal traffic.
5. I'm not sure who on here is complaining about jobs, but Austin's unemployment rate is at 5% and among the lowest of any medium-sized city in the country. If you can't find a job there, you seriously aren't trying hard enough.
6. No, you should not move to Austin expecting to work in the movie business. Texas refuses to offer production companies the same types of tax incentives available in neighboring New Mexico and Louisiana, not to mention Georgia or North Carolina, and as such loses a lot of business. Even films set there (e.g. "No Country for Old Men" and the more recent "Texas Chainsaw Massacre" movies) are predominantly shot in New Mexico and Louisiana.