I'm not a big fan of commuting. I prefer living close to where I work. However, my brother-in-law commutes from Newport to Providence daily and doesn't think it's all that bad. He lives off of Broadway in Newport (where the bus to prov travels) and works in downton providence. He takes the bus most days, and it's only a 50 minute ride if you catch the express bus. The am one leaves newport at 7:10am and arrives in downtown prov (kennedy plaza) at 8:00am. The afternoon express bus leaves prov at 5:10am and arrives in newport at 6:00pm. However, if you miss the express bus it takes more like 1 1/4 hours.
see schedule:
http://ripta.com/schedules/view.php
choose the #60
Newport has lots of nice neighborhoods with old victorian and colonial houses, but home prices have skyrocketed in the last couple years. In the late 90s, you could find houses for less than $200,000, but now it's hard to find any for less thatn $300,000. I'm not sure about the rental market.
I grew up in Newport, and it's a nice place to live, expecially since its right on the ocean. Other nice things: old architecture, compact walkable/bikeable city so you don't need a car to get around town, it has cooler summers (ocean breeze) and slightly warmer winters than providence. On the downside, it gets really touristy in the summer months, and generally goesn't have as much interesting urban cultural stuff as providence (where I lived as a college student). Although, from my recent visits, it does seem that Newport has a lot more urban cultural stuff, i.e. intenet cafes,funky bars,ethnic restaurants, yoga studios, etc.) than when I lived there in the 80s and 90s.