It really depends on what you want out of life. If material things are important then the scenario would probably not be a good move. If you are searching for some kind of fulfillment you may indeed be happier albeit a little poorer. Three years ago I took a position that paid me 40K less per year than I was making at the time. It was a difficult choice and to be honest there were many sleepless nights and doubts but in the end it was, for me, the right choice.
I do, sometimes, miss the money but not to the point where I would ever consider going back.