What about the 46 bypass?IMHO Yes, you're asking for trouble if you live on the east side and work on the west. Traffic flow N-S on 37 is smooth and fast, traffic flow east-side to west-side isn't so smooth sailing, especially during rush hour. There just isn't a good way to get across town.
Ellettsville is only 5-10 minutes from Bloomington, IMHO too close. Spencer is a good ways away and a bit more frustrating drive. It's a 2-lane state highway that is 99% no-passing zones because of the hills/curves. Get behind a single slow person and it seems to take all day.
I would take the advice of some others to maybe find a place to rent and figure the place out for a while before choosing where to live...