God I'm getting fed up with these constant links to blogs and message boards where nobody does anything but whining about how bad life is and blaming absolutely everything except themselves.
NYLS is not considered a joke by recruiters at all. It is considered a joke by 0L's here, and the only well funded complaint they've ever come up with is that it's an expensive school - and indeed, this is something to take into consideration if you're going to start your own practice, as that itself will be a costy and uncertain investment. The other reason NYLS keeps getting bad press is that it's in NYC which is a very tough market to break into, but plenty of NYLS grads do very well at good firms, so the school in itself is not a joke.
To answer your question, I'd say how much are you likely to be able to increase your LSAT score, and how much do you want to be a lawyer. If the answers are much on both accounts, I'd say stick it out for another year, prepare like insane for your next LSAT. If you're able to at least come close to a 160, even if not quite breaking it, you put yourself in a position with much more options.
If your feelings are that you can't improve much from your last LSAT, but still feel that you really want to be a lawyer, go to NYLS. I always make the assumptions that people who are post undergrad are able to figure out the financial part on their own. You know better than any of us if you can stomach $50-60k a year or not.
You are going to NYU man...I mean, that says it all. I have 4 friends in NYU Law right now, and I cannot BEGIN to convey the difference between teh professional scope of their lives vs. my Rutgers-N degree. I mean, literally people on LSD who are all 0Ls, mostly out of undergrad and thus with few peer friends in law school, actually OVERPLAY the potential from a low-tier school and DOWNPLAY the potential from a T14; the gap is actually even greater than most people realize.
My friends at NYU just get drunk all the time and party and they literally have almost EVERY top firm in NYC giving them offers; they explain how easy the interviews are and how, essentially grades are arbitrary, with the only consideration being if one wanted to work at Sullivan, Watchell, or Cravath, but it's silly because the guy who gets As vs. the guy who gets Bs both make $160,000 at the top firms in NYC!
You're telling people about NYLS having decent prospects and stuff...haha, I think these blogs and sites are extremely useful in telling the truth about low-tiered grads in NYC/NJ; they don't apply to you man. You undersatnd that, right? They don't apply to you at all.
For the rest of us, not being in the top quarter of the class means potential unemployment for a long time after graduation and great difficulty finding ANY job period.