I love the Austin area. I've lived in the suburbs around here since April 1999 when I move here after undergrad. It is the largest city I've lived in, so I prefer its smaller size compared to the other legal markets. My wife is a native, so she loves it too. If it lacks something you want, you can usually find it with a drive to San Antonio (1.5 hours), Dallas (3 hours), or Houston (3 hours).
Yes, the Dean is hoping to use some of the tuition increase for more scholarships and financial aid. That's a whole other issue of who will get it (usually that means the really smart kids and the really poor ones). But on average, I believe about 1/3rd of the tuition increase will be returned to somebody in the form of aid.