Is there anything to do in providence area other than the small downtown and brown area. don't get me wrong, it has a nice central city, and I mean small relative to other large cities, but i get the feeling it is so rough around the edges that most people commute in and commute back out after work. Is this wrong? I have been thrice.
Well, you have the downtown area (Kennedy Plaza, etc), the newer area around the Mall Waterplace Condos, BC/BS Building and the entire Providence Riverwalk. Sure, you have Thayer Street/Brown Univ, but the East Side is a large chunk of the city that includes many more neighborhoods than just the College Hill section near Brown. Wayland Square is an excellent urban square and entirely urban neighborhood. It's dotted with neighborhood stores, restaurants, cafes, etc. It doesn't get the press that Thayer or Fed. Hill get, but it's excellent.
You also have the Benefit/ South Main street historic district on the East Side. This is one of the better kept historic districts in any New England city/town. There are tons of gorgeous old homes there. There are also plenty of restaurants, shops, etc here. Wickendon Street is also very active too with restaurants and pubs.
WAY down hope street (near the Pawtucket line) you have a nice little neighborhood center with some cool restaurants, an excellent public library and cool shops. This is another one you rarely hear about but would enjoy if you visited.
Federal Hill is large and active too. It's a truly ethnic neighborhood (probably more authentiv than even the North End nowadays). There are SO many shops, restaurants and activities here. It's a great spot.
Even some of the "grittier" urban neighborhoods have a lot to offer. Olneyville has some excellent blue-collar food. Their New York System hot-dogs and BBQ places are out of this world.
One of my favorite things about Providence is how diverse the nightlife is for such a little city. You have 4, truly distinct nightlife districts and each is very different. You have the Downtown nightclub area which consists of the real loud, large, dance clubs (with an occasional irish bar, i.e. Mcfadden's), then you have the nightlife on Federal Hill which includes a bunch of upscale lounges and bars, very trendy and traditional at the same time. Obviously you have the college bar type scene on Thayer around Brown which are always active. Finally, you have the pub scene on Wickendon (it spews over onto neighboring streets too).
As far as urban activities go, Providence is only second to Boston in New England. No other city comes even remotely close. What Providence does well is blend all of the classes. Sure, portions of South Providence are very ugly, but that's a small fraction of the city. You seem to think that Providence consists of Downtown and College Hill. The WHOLE East Side (a HUGE area) is chalk-full of active, cool neighborhoods and neighborhood centers. Federal Hill is a gem. Downtown is spreading outward and as always, is very active.
There's TONS to do in Providence (again, more than any city in New England not-named Boston). It's not all condensed in a 2 block radius, and it's certainly not all advertised in a travel brochure (there's too much), but it's there... spread throughout the city which is wonderful.
Like any city of size, many people are going to commute in and then commute right back out for work. Keep in mind, Providence's metro population is about 1.6 Million people. However, MANY people do live there and the city is always active. In addition, you have Brown Univ. RISD, URI, Johnson and Wales, and PC there which means TONS of students. Even the downtown area is very busy after hours (busier than any other city I've been to in New England). Providence has it's rough pockets (what real city doesn't? It's part of the urban environment), but on the whole it's an excellent city.