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"My question is more about the safety of locating one smack in the middle of a city. "

We don't put any other type of powerplant in a city, so why would we do it for fusion? That being said, fusion won't happen in our lifetimes and even when we do get it, we probably will never really use it. Fission is just better in almost every way. It makes 5x the power per amount of fuel, it makes far less neutrons, and the temperature generated is far more usable. Oh, and fusion absolutely makes radioactive waste and a fusion failure makes a meltdown (which doesn't have to be a failure case for fission) look like a Sunday picnic.

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Judging by the comments I see most places, the general public's perception of fusion is "magical scifi tech that will never happen."
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That's because it almost certainly is. Don't hate on the messengers.
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My point is, that's a pretty positive view of fusion. They think it's too good to be true, but if it actually happens then I doubt many people will suddenly switch into thinking it's a dirty old explodey thing like fission's public image.
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