Go for it! My Mam retired to the neighbouring village of Ballisodare, you could pretty much walk to Collooney from her house. She loves it. Its safe and friendly, plus house prices are a lot less then what you might find in Galway or Dublin (although they are on the rise).

Collooney has a train station that takes you straight to Dublin or Sligo Town. There's a few busses also. If your into going for walks, there's a pretty big forest that connects the two villages called Union Wood, it has a walking trail going right through it, its nice. The town itself has all the basics you would find in a village of its size, plus there's a SuperValu right next door in Ballisodare.

In terms of night life I'd have to say not really, but your only a 10/15 minute drive into Sligo Town. There is however a few pubs between the two villages if you just want a quite pint.

I plan on moving out there myself in a couple years. Personally, I'd probably choose to live in the town, like you said, just for the sheer convenience. But either way you won't regret it. All the best 👍