I grew up in Manchester but now I live in the Midlands, outside of football there are a lot of aspects of Birmingham that are better than Manchester...
You're in the middle of the country, you could be in London or Manchester in 1hr 20 mins each way.
The music scene here if you try and look outside commercial music is fantastic with the B-town, heavy metal and reggae scene.
Very diverse city where you learn all sorts of different cultures.
Public access is best in the country, no doubt.
Footballing wise, obviously Villa are the biggest club but if you're going to count East Midlands, then Forest can be included in that too, Aston Villa and Birmingham City is THE derby in Birmingham no doubt about it and IMO is one of the most hostile in the country, a lot of Villa fans I know really don't consider West Brom (or the 'Tesco Bags') as a hated rival but West Brom hate Villa though, more of an annoyance like the shit that doesn't flush in Lehmann's terms, but they don't like Wolves (known as the Dingles or Dogfaces amongst Villa supporters) either as games between them are feisty affairs at times too, but of course, Wolves big rival is WBA in the Black Country derby, equally as heated as Birmingham/Villa, okay not much success on the pitch, but its a lot of fun with the banter that goes on, plus the Punjabi Wolves and Punjabi Villains always do good food before games and the multi-cultural intergration is tremendous, something a lot of London clubs could learn from.
Birmingham has more people in than Manchester and is geographically bigger - that is why its the 'Second City', it gets a bit of an unfair rep at times. Both cities have their good and bad areas.