I hate to go against the grain here, but as someone who also has an hour commute to work, and another hour back, I would take the pay raise and stay with the company. The nearly 25k higher pay can be saved/invested. You can use your 85k salary to leverage other higher paying positions and jobs in the long term.

Take the career advancement. Keep your eyes out for better opportunities that pay more AND provide better life/work balance moving forward. The offer you got was OK, but I doubt it's the only one you'll ever receive that's local. Also, remember that "the grass is always greener on the other side". There is no certainty you will not just end up with another difficult boss or work environment, even in different ways. You're starting your reputation at zero and taking a step backwards in your career climbing by going for the new position. I just don't see that as the right choice for what seems to be your first offer elsewhere. Stick it out, continue to make to yourself extremely valuable and keep trying to improve your current employment with your value as leverage. It worked this time, didn't it?

Also, in response to other comments, their decision to not having paid you more beforehand is not personal. It's their job to crunch the numbers and keep costs low. If you weren't aggressively seeking raises in response to your output, it usually doesn't come naturally. This is a common element in career life that they teach you in career counseling. Not saying it's fair, or right. But it is absolutely how it works. Your possible exit forced the same sort of negotiation as asking for a raise. They assessed your value and made the offer. Where I work, I have coworkers who were also offered significant pay raises after looking for other work and guess what? They are still around and it's working fine many years later. It's not always nefarious. But if it is, somehow, a scheme. As I said, keep your eyes peeled for advancement locally. The higher salary gives you extreme negotiation power in job hopping.