I would say the Coast is the only place in Mississippi that is somewhat comparable to Jackson and it's better. It's spread out, but it has a decent sized population, has better food and entertainment options between the different down town areas and casinos, and its schools are good enough that you can raise a family there without being rich. It also has a decent sized professional class, is fairly young for Mississippi, and has economic opportunities. The only issue is what will happen to it long term with the insurance issues. But even then, there's not a real city. It's almost like a bunch of suburbs formed next to each other without a city.
Tupelo, South Memphis, and Madison are all nice enough for young families, but they are not really offering the same thing as Jackson. Oxford and Starkville and Hattiesburg are also nice enough and better for a lot of people, but again, not really offering the same thing as Jackson. Jackson's competition is Birmingham, Memphis, New Orleans, and I guess Little Rock and Mobile. Jackson's problem is that it offers big city problems without big city amenities. No sense in bashing it, it's just the way it is. As several people have mentioned, it's still the best option in the state for many people (hence it being the biggest population center in the state). People in the surrounding areas should definitely be doing what they can to support and promote Jackson though, as Jackson turning into Little Detroit is not going to be good for anybody.