You both will LOVE it in Bloomington, unless you need big-city-livin'. My partner did his PhD in English (Brit Lit) there many moons ago and we head over a couple times a year to visit with his old friends, go to music festivals, etc. Lovely and supportive community, both at IU and outside of academe in Bloomington. Congrats!
p.s. I applied to IU-Bloomington years ago and didn't get so much as a waitlist spot. Reading your posts makes me wish I'd given it another shot.