I'm not sure there really is any right answer to this question. I stayed home with my oldest, suffered horrible postpartum depression, and in general, it was a disaster. I went back to work when he was three, but work an alternate shift from my husband so he wasn't in daycare. When we had our second, I went back to work ASAP after she was born, but I took her to work with me until she was eight months old, when she went into daycare full time, since I was by then working the same shift as my husband. As it turned out, I hated that even more than I hated staying home. I felt like we got home in the evening, shoveled dinner into our kids and put them to bed. We had no quality time together. Our weekends were consumed with putting the house back in order, doing laundry and prepping food for the next week so we didn't end up eating out all the time. We did this for about a year before we couldn't take it, and my husband quit to stay at home with the kids (although the oldest was in school by this time).
Ever since then, we've had some sort of arrangement where we stayed home with them. It's been a combination of odd part-time jobs, working from home, or having just one income, but the kids will never go back to daycare. Not because daycare wasn't good for them, it was great. It was that the life that came with two young kids and heavy work loads wasn't something we could cope with as parents. For us, getting by with less income is far preferable. I lost my mother when I was young, and it's always been present in the back of my mind that I may not live to see my children into adulthood. To me, it's far more valuable to spend time with them now, and worry about the money later.