I lived in DFS for a little over 2 years. It's definitely a 'small town' but good people there. Ponce de Leon Springs (state park) is a few miles to the east as well as Vortez Springs. Definitely gotten bigger since I left in 2000. Town is centered around the "Lake Yard" - round lake with Antebellum homes surrounding it. I lived across the street from said lake yard and it was really quiet. Some good homecookin restaurants as well.
Hope that helps- if you have any specific questions- give me a shout
My wife and i went there for a few days in June to check it out. We stayed a Hotel Defuniak. Wonderful little quaint hotel and town. I can live there easily but my wife needs a little more in the line of shopping.. We did also travel down to Santa Rosa and Destin which was fabulous. I'll have to put Defuniak on the back burner for now. Give it few years maybe... thanks for your reply. :)