I live out that way but not as far as where you're looking. If restaurants and bars are important to you then yes, I think it's too far from the town centre. The 356 bus isn't reliable and you'd get fed up with the long walk. There are some benefits of the area: fairly quiet, easy access to Sydenham, Forest Hill and Catford (which gives you a greater choice of trains), and of course Sainsbury's at Bell Green, but I wouldn't recommend it for anyone wanting a social life on their door step.

As for the old gas works, the site in front of Sainsbury's is being prepared for a residential development (quite a tall one); and the site to the east is earmarked for commercial units although that fell through due to the economic downturn and I don't know if anyone has plans to develop it at the moment. There's also a redevelopment across the road of what used to be a parade of shops with flats above. It's being demolished to be replaced with another residential development.