Personally, I feel that you should do whatever option is going to benefit you the most in the future. If going to Sydney means that you will enrol in a course which you enjoy more, go there. In the long run, you are making choices that will affect your future and your career. If you chose a different course just because its local, you may not end up doing exactly what you love to do. Ultimately, if you get there and realise that you don't like it, you can easily just go back to melbourne, or even go somewhere else.
I am in a situation myself which is sort of similar. I am in Perth, but have the opportunity to go to Canberra. I really liked the school I applied for in Perth, but the opportunity available to me in Canberra is so good that I am going to go there. If I don't like it, I can just come back to Perth.