I lived there for six months and have really good memories of Flagstaff.
Phoenix is looking way better from last, the only downturn I noticed is when I looked at an almanac it said its population grew by more than a million! But they added a light rail kind of like trolleys in San Francisco, and I'm liking what's happening.
Be sure to check out Tucson's nude beach -- TanqueVerde Falls East, of town in the Coronado National Forest (also sometimes known as Redington Pass).
Phoenix is great for those who like sunshine. People are friendly, and the food is great.
If you're coming to Phoenix, try to be here during the first Friday of the month. There is an "art walk" where all the galleries downtown open for free and you can drink booze in the street. There is also usually lots of cool live music going on.