Okay, so I actually did make this exact choice last year (someone made reference to my past thread I think).
I ended up at Stanford (after getting in off the waitlist), but it was a really tough decision, and I don't think you're ridiculous at all for seriously considering taking UT. I'm happy with my decision, but I don't think I would have been unhappy either way.
You're in a great situation, because either way you're avoiding some risks and hedging your bets a bit. With Stanford, you're guaranteed to get a good job no matter what, even at the bottom of the class, and you're almost certain to be able to go into whatever field/market you want. But you have to do a legal job or else a job that pays a ton, in order to either qualify for LRAP or pay off your loans yourself. Still, that's only for ten years or so, and after that you're free to do whatever, and the Stanford degree will open a lot more non-firm/non-law jobs down the road. Texas also hedges your bets because, obviously, you're not taking on much debt. So you could hypothetically decide you didn't even want to be a lawyer after a couple of years, which is a great option/freedom to have. But then you're also kind of back at square one, because a law degree from UT is not that great for non-law jobs.
Here are some pro/cons:
Near to family
Austin is basically the most amazing place to live ever (although you can't take advantage of it during first-year at all)
Reasonable cost of living
No debt! (besides COL, which is something)
Can live off campus but still really nearby
Reinforced Texas ties make it much easier to get a job in TX/Austin (elaboration: you can definitely get any job you want in Dallas/Houston etc. with a Stanford degree, but from my friends' experiences here, I think it's pretty hard to break into the Austin law market without a degree from UT, because the law market is small and everyone wants to live in Austin, and most lawyers there went to UT. So if you want a firm job in Austin, that's basically the one area where you might be at a disadvantage coming from Stanford instead. Your Texas ties can compensate for some of that but not all.)
More competitive, a lot more stress about grades/where you are in the class
Harder to get non-firm jobs, especially academia/clerkships
Class is bigger, so you won't have as close connections/attention with faculty/OCS/classmates as a whole
Surrounding university is still really good, but not as academically stellar as Stanford, so you don't benefit from exposure to the university as a whole as much
No on-campus law dorms the way Stanford has, so you miss out on that super easy/convenient option, plus you miss out on the community that comes from all living in the same group of buildings
Fellow classmates not as uniformly ridiculously over-accomplished and amazing (I think there's definitely something to be said for being constantly wowed by the achievements of your fellow classmates--not that your fellow classmates at UT won't be great, but I don't think anyone will argue that the quality of the class as a whole won't be higher at Stanford.)
Quality of professors--there are great professors at UT, don't get me wrong, but Stanford definitely has a higher number of really distinguished, superstar professors
Munger law school dorm (discussed above)
University as a whole
Quarter system (there are pros and cons about this, but it does allow for you to take a ton of different classes, and when you do a clinic, that's all you do that quarter, so it's basically like a full-time job, which means our clinical training is reallllly helpful and generally admired by employers)
Professors (multiple times so far in 1L classes, we've read Supreme Court cases that the professor argued in, and it blows my mind every time)
Fellow classmates (it's kind of intimidating sometimes! But everyone is still really friendly, which is true about both of these two schools)
Lack of competitiveness/lack of grades/being able to just punt a class for a P and not having it be a big deal at all
OCS/Levin Center career advisors (Because our class size is so small, you can get tons of one-on-one help and really they will basically help you do anything with your law degree that you could ever imagine)
LRAP means that the loans may not be a big deal
Small class/section size means it's really cohesive and everyone gets to know everyone really well
Academia/clerkship opportunities are WAY better
Definitely places better in DC than UT, and Atlanta probably no big difference either way--and to be honest, in bigger TX markets, probably no difference either since you have TX ties
Small class size (I can see getting sick of the same people after a while, although there's always the rest of the university)
Cost of living, especially if you want to move off campus--and availability of nearby off campus housing is not great
Boring immediate area (there's tons of cool stuff to do, but most of it's an hour away, like in the city)
Cost overall (though again, there's always LRAP)
Farther away from home/family
I would definitely take either Stanford or UT full-ride over your other options.
I am debt-averse too, and it's a little terrifying to look at my loan statements sometimes! But here's the thing--I decided I could commit to doing something law-related for ten years. With a Stanford degree, I'm unlikely to ever be unemployed, and so that means I'll either be doing something public interest and awesome (my current goal is to be a public defender) and not really having to pay back any of my loans, or working at a big firm where I make enough money that paying back the money is not a big deal at all. Either way it shouldn't be too much of a burden.
If you have any interest at all in being a professor, I wouldn't go to UT--it's possible, but highly unlikely you could become a professor from there. I chose Stanford because I wanted to keep all my potential career paths open, instead of just narrowing them to firm job/abandoning law field altogether. Plus I figured, if I don't go to Stanford, I'll always wonder what if--what kind of people could I have met? What amazing professors/opportunities could I have had? I knew what I would be getting at UT, so I knew what I was giving up, but Stanford and a Stanford degree are a lot more wide open.
Not going to lie, some days I do wish I were living in Austin (but for me personally most of that has to do with the fact that I live off-campus with my two dogs and had to live kind of far away from campus as a result, which I wouldn't have had to do in Austin). But I wouldn't have had time to do most of the fun stuff in Austin this first year anyway, and when I have more free time I can find the time to go SF. But I never really have a day where I wish I were at UT. My professors here are just too amazing, and I do love having the sense that we're the future leaders of the profession, that people in my class are going to be SCOTUS clerks (and maybe justices!) and prominent politicians and general counsels at major companies and NGO leaders...there are a few people at UT who will do exceptional things, but most people in the class will just work at firms their whole lives. There's nothing wrong with that, but it's nice to feel exceptional too.
Okay this is really long and rambling, gotta get back to editing a brief. Post here or PM me if you have more specific questions. I'm happy to help! It was a really really hard decision for me, but I don't think you can actually go wrong either way.
Oh, and definitely go to Stanford's ASW/visit some other time, plus visit UT if you haven't done so already (but don't let yourself be too seduced by how awesome Austin is). I feel like actual visits will help make your decision for you if you're still struggling. Good luck!