I lived and worked in South Bend after I graduated. And I think it's hard to argue that South Bend is a "nicer" place to live than any Big Ten town with the possible exception of West Lafayette. Maybe on a par with Champaign or East Lansing, but not really "nicer" in any meaningful way.
That said, it's not really a fair comparison. Most of those schools are so big, and towns so small, that they dominate the landscape and it's all basically one giant campus (the exceptions being Northwestern and Minnesota). Notre Dame is self-contained, away from what's really South Bend, and, yes, the campus itself is a great recruiting tool.
But that doesn't change the lousy weather, or the distance from home, or the culture shock of being dumped into a world full of conservative white Catholic kids from the suburbs. Don't get me wrong, some recruits embrace all that and have a great experience. But it's silly to pretend these things aren't a factor for a lot of them.
On Pagano, we need to get Manti and Toma and Schwenke in his ear, to tell him of the glories of snow.