My thinking is along the same lines. Two critical differences. You already mentioned one-- artists live there thus creating more than a 9-5 community. when you have downtown residents, they're more likely to play a role in drawing businesses that are open beyond the 9-5 hours (i.e. restaurants, bars, theater, etc) and draw people into town for more than just menial visits. Accountants, hair stylists and dry cleaners draw in people, but merely for basic business needs. Art and galleries, museums, etc draw people in for entertainment. The people that visit galleries are generally there because they WANT to be, not because they need their suits pressed or taxes done. The increase in restaurants, bars, etc also draw more people that WANT to be there (after hours as well).
The second point is that artists add a "unique" touch to the area. It's safe to say that an art gallery is far more appealing than an accountant's office or dry cleaners. Live-in artists tend to do minor things to help beautify cities as well. Dressing up otherwise blank walls, brightening up storefronts, and simply adding to the diversity of downtown's residents are all things that artists bring to the table.
Well, there's the problem. In the late 90s and early 00s, New Bedford had VERY little going on. That's changed quite a bit from the mid 2000s onward. I think you should consider revisiting when you get a chance. I'm not going to go into detail in the Lowell thread, but the downtown area has seen quite a change in the past 4 years or so, starting with some 40+ small businesses (mostly shops, restaurants, and bars) opening while a mere 8 closed (during a recession, mind you). It's a different city than it was 10 years ago. Keep in mind, the Whaling District only became a national park in the late 90s. It's since taken off with the renovation of many historic buildings and addition of many businesses. It's a city that has a ways to go (still far behind Lowell), but it's not the city it was 10 years ago. The fishing fleet is the highest grossing in the nation (and has been for the past 6 years straight) and the port increased traffic by 30% last year marking a continuing trend of growth. They've received federal money for a chunk of work to be done on opening commuter rail service to South Station as well (by 2016). You'd notice a lot more than just increased civic pride if you visited today.
I digress. It's not a pissing contest. Lowell is further along in revitalization than New Bedford is without a doubt (I'm not/wasn't trying to say it was). They're two very different cities. I also agree with much of what you say about Lowell's potential. I don't think Lowell is quite as far along as you lead on, but it's only a matter of time before it gets that far. It's heading in the right direction. I love visiting Lowell, but I am an urban enthusiast. Many of my friends in the area hate it, but their reasoning is flawed (based on their view of Lowell 15 years ago). My opinion is that reputations (particularly bad ones) stick with cities the longest. Lowell, for decades, has had a negative stigma about it. Even after it has gentrified, there will be people who can't let go of the past.
