I tried to get some precise figures to help answer this question and it turns out that this is still an active area of research to some extent.
en.wikipedia.org/wiki/Galactic_Center
Our sun is just under 30,000 light-years from the center, which makes it fairly close to halfway out as you said because the galaxy is 100,000 light-years in diameter. The only reason the galactic core isn't readily visible to us at night is that it's covered from our view by space dust.
en.wikipedia.org/wiki/Stellar_density
This article says the stellar mass density in a globular cluster, which has a very similar density to the galactic core, is about 500 times that of the sun's neighborhood.
astronomy.ohio-state.edu/~ryden/ast162_7/notes31.html
This page says that stars near the galactic core are only a light-week away from each other on average, and also gives a starlight luminosity estimate of 200 times the luminosity of the full moon for locations within a parsec of the galactic center. The distance from the Sun to Proxima Centauri, the closest system, at 4.2 light-years is close to the average distance between stars for this point in the galaxy.
quora.com/What-is-the-density-of-our-galaxy
This answer claims the mass density of all objects near the galactic core is about 1000 times the mass density of our sun's neighborhood.
en.wikipedia.org/wiki/Apparent_magnitude
This gives the brightness of the night sky with a full moon compared to the Sun's brightness, which is about 400,000 times greater.
What we get from all this is that the starlight wouldn't be a problem for life at the galactic center, but other interactions such as more frequent supernovae, cosmic collisions, GRBs, other dangerous radiation, and interference with other stars' gravitational fields would, as suggests.
en.wikipedia.org/wiki/Galactic_habitable_zone
This page outlines the basic concept at work here. The classic version of the galactic habitable zone goes from roughly 4-10 kiloparsecs from the galactic center, or ~13-32,000 light-years. The outer parts of a galaxy are held to have too low a level of metallicity to create habitable planets because the needed heavy metals fall to the denser regions of the galaxy. I wonder if the starlight luminosity issue is a much bigger problem for larger or differently-shaped galaxies than ours. But the other problems would be bigger still in larger galaxies. Some have criticized the concept of the galactic habitable zone for not being well-defined enough, but the jury is still out.