Of course, there are good, I daresay exceptional, professors at the University, but they are far and few between and the university doesn't really care all that much about keeping them.  After all, UT is cutting back on academic funding while raising Mack Brown's salary and building scoreboards the size of Canada.  Hell, the education board there was very close to raising the size of foreign language classrooms to 80 students from 25.

As for the students themselves, this was arguably the worst part of my experience at UT.  The campus is thoroughly divided and racially segregated.  Honors kids (Plan II, Liberal Arts Honors, etc.) tend to not hang out with the rest of the population, and members of Greek life (which obnoxiously dominates the campus social scene) tend to be rather cliquish and standoffish.  Students are incredibly arrogant and competitive and always try to shove their GPAs in your face.  Focus of the students and faculty is on gaming the system and getting the highest grade with the least effort, which in most cases means learning remarkably little.  The intellectuality of students there is truly a joke— On several occasions, my train of thought was interrupted by students next to me in the library bragging about how hammered they were the last week. 

Austin itself is a cool and eclectic city; however, like others have said, the homeless people berating you does get annoying after a while.  Really, if I were you, I would avoid going to any school in Texas.  UT seems to only further the stereotype that Texans are a bunch of conservative, backwater idiots.