What is the color of the example? I rather like that.

One thing with vinyl is that it is sensitive to temperature variations and darker colors absorb more heat and will buckle more, and show fading more. With time, vinyl also becomes brittle.

Have you priced the fiber cement? Installation is more expensive, and it needs to be vented, but it will last longer. Just because the neighbors are vinyl doesn't mean you have to vinyl too.

If you do go with vinyl, I would go with the lighter color--it will look darker on the house than in a little chip, and the longevity should be better. I have also read that there are ways to eliminate or disguise the J-channel around the windows and door, which will make it look better, However vinyl windows with integrated J-channels can direct water behind the siding, which isn't a good thing, and J-channels in general are the weakest part of the vinyl siding system. Housewrap only does so much and deteriorates with time or develops holes during installation. Worth investigating your options to get the best installation possible..

http://www.finehomebuilding.com/pdf/021149082.pdf How to from Fine Homebuilding for quality installation
http://www.finehomebuilding.com/item/8759/8-ways-to-make-vinyl-siding-look-its-best

Also, please don't omit or skimp on the casings, and include a bottom sill if you can. It just doesn't look right without wide enough casings. Costs more but so much better. Also use divided light simulated muntins on both sides of the glass for the windows, not those little strappy things wedged in the middle.

The example is pretty good as far as I can tell, in those respects. I prefer the soffit to follow the roofline to avoid those porkchop eaves, especially on the portico, but it at least has a nice solid entablature (beam) above the pillars. If you allow the soffit to follow the roofline, then the portico roof can be lowered a bit to make it look a little more integrated and give a bit more space under the upper window.