I thought the area was very nice and even the so-called 'bad parts' of town were mild by bigger city standards. I looked at several apartments and was happily surprised with the prices. One student I talked to said his place wasn't the prettiest, but he only pays $350 per month. On a student's salary, I think that's great. The places I looked at were 2 bedrooms, 900 to 1,000 sq. feet for the $650 range. Not too bad at all.
As for the excitement of city life, I don't really think a big city is necessary during law school (Unless your goal is to network with the big firms or party a lot). Everything one needs could be found in Salem, including Target, Fred Meyer, a few cute pubs, and a relatively decent mall.
Another bonus of the area is the low cost of living. For those of us on a budget, any school that allows a short commute and good housing prices is helpful. So again, depends on your goal. I want to do public service/government law, so the less debt I have at graduation, the better.