Our kids are still several years away from having to make this decision, but the wife and I were casually talking about this the other day.
I'd love for my kids to be 4th generation Longhorns, but also wouldn't mind for a moment (except perhaps financially) if they chose an elite school like one in the Ivy League, Stanford, Rice, Vanderbilt, Notre Dame, etc. Wife went to A&M so she'd definitely be fine with them picking A&M, too, but recognizes that UT is more highly rated. The concern we'd have is if they couldn't get into one of the elites or either of our alma maters. What's next? (Btw, not meaning to offend anyone on here.)
SMU/TCU - Both (but especially SMU) are extremely close to us in proximity, so not sure they'd get a full college experience being so close to home. Also not sure the bang for the buck is worth it.
Baylor - Expensive and strong on religion that isn't our own.
UTD - Also very close to home and seems to lack any traditional college atmosphere whatsoever. Would be great for STEM but would seem boring AF.
Houston - I don't know a ton about UofH. I feel like it has improved, but is it still largely a commuter school? Also, are you locking yourself into to only Houston-area positions for job prospects?
Tech - The next largest "name brand" state school after UT & A&M with most of which comes with being a big Texas school, but it's still waaaay down in the rankings. Appears to have a decent network throughout most of the state, but Lubbock sucks.
Generic SEC state school - Would be at a flagship school in a somewhat neighboring state, but generally poorly rated.
UNT/TxSt/SH/SFA/Tarleton - Similar to Tech, aside from being in a better location than Lubbock, but also worse in the rankings.
If mine couldn't get into an elite school not named UT, I think I'd encourage them to keep their nose in a book for a year at UTA before being able to transfer to UT.