The responses you've received so far sum things up pretty well. It sounds like you've got a chance to go from a T4 to a highly ranked T2. Granted, you would indeed be moving into a different galaxy, but it's still roughly the same universe.
It sounds like you plan on staying in TX. Were you weighing a transfer to the University of Texas (or certainly a T14, and perhaps even a top 25 school that places well in TX), I think the choice would be clear: transfer.
Not knowing anything about the TX market or U of H, I can't offer much in particular. But assuming you were to transfer to U of H, bear in mind that:
1) Though you'd be viewed in a much better light by firms, those firms would be looking at your 1L ranking, based on what that ranking means at your 1L school. As a transfer, 2L fall recruiting is sort of a hybrid experience; after 2L, your 1L school is not a factor (and, to the extent you care, it can become a bit of a closely guarded secret).
2) I've met some transfers who received money at their new school, but it's rare. As such, assume you won't be getting any financial help, i.e., you'll be paying full freight for two years. If you're o.k. with that far larger debt burden, go for it.
3) Don't plan on being in the top 5% at your new school. You're obviously a capable and driven student, so perhaps assume you'll be in the top third at U of H. Do students in the top third at U of H have the sorts of employment opportunities you desire? If yes, go for it.
Please excuse the trite platitude, but ultimately, it really does come down to resolving a very real dilema: On the one hand, you'll have this degree for ever, the extra debt amortized over your career is no big deal, and the legal profession (to a great extent) cares about rankings and status. On the other hand, getting out of school with relatively little debt and with job prospects that aren't much worse (i.e., between being a top student at a T4 versus a decent student at a top 50+ school) is mighty attractive.
I transferred from a T4 to a T1. I'm glad I did, even with the extra $75k in debt. But I do often wonder how nice it would feel to have student loan payments that seem like car payments, rather than mortgage payments. The latter isn't so bad, but having the former would open up a lot of options.