I don't know what to do. Is it worth leaving a good thing for more $$?? It would be a very similar position to what I have now. I need to apply in the next 2 weeks.
So there ya go! Not too exciting, but driving me crazy to the point that I can't sleep.
What is the position like at the new place? It's one thing for people to talk a good game and upsell a job, then you show up and find in reality it's a nightmare working environment.

The extra money is because they have to pay the extra to get people to stay.

And that's why there was an opening.
Do people tend to stay long term in the same position at the new place? How stable is the company? Getting more money in the short term, only to lose it down the road is no bargain.
However, with no commute, much more money, if it turns out to be a great job, it sounds like a real win.
In this economy, no one can fault you for leaving a job for a better paying job. That's life. If people in your small town ask you why you left your old position, you can simply say, "I loved my old job, but this new place offered more money and we really need to save it right now." Only someone jealous or not have an understanding of these economic hard times, (or in denial,) would have a problem with you saying that.
I say, apply. If they bring you in, talk to them. You'll get a feel about the place, the interviewer, how things are really run. You don't have enough info to make a solid decision right now. Applying gives you an opportunity and choice you didn't have otherwise. You want to be able to create the opportunity so that
you can say no.