Answer
Montevideo has more job openings, universities, specialized healthcare, cultural events, and transport options. At the same time, traffic is denser, differences between neighbourhoods are more noticeable, some types of housing are more expensive, and there is more everyday bustle. A small town usually offers a calmer pace and shorter distances, but fewer jobs and services.
Quality of life does not depend on size itself, but on everyday needs. For a remote worker, internet access and healthcare are important; for a family, school and extracurricular activities; for someone without a car, bus service. In a small town, the needed specialist or institution may be located in the departmental capital.
Before moving, spend at least a few ordinary days in your chosen place. Check the shop, clinic, public transport in the evening, and the journey to Montevideo: the quiet that appeals to tourists can prove to be an advantage or isolation.