J.- this is just my 2 cents and in the grand scheme of things, doesn't mean anything but....
It would be hard to tell him where to work or where to live once the relationship between the two of you is over. If he feels that he could make a better living, be happier and maybe even be a better provider for your daughter closer to the city, then ultimately, that will be his choice and his call. You may not want your daughter growing up knowing her father might resent the fact that he had to stay and live somewhere that he didn't want to just because of her (not that it would be true...but kids perceive feelings very intuitively...).
That being said....I do agree that she should live with you. And, she's too young to make a trip that far frequently. I think that the arrangement should/would be that you would retain legal/living custoday (legal= making all decisions for her...school....residence....etc. and living being that she lives with you) and he would have visitation to see her where you reside. How often and for how long would probably be whatever was agreed upon by both of you.
It does sound as though you are both looking out for what's best for you....WAY TO GO! I didn't have that with my ex (he was resentful of the obligation of having a child and bolted). I didn't want him around anyway so that my son would grow up knowing that his father resented him. Good riddance on our part. But, your situation is different. You both have the right thing in mind :)
Good luck! I hope everything works out and sorry if I offended in any way.....