That would rock.
Personally i am all in favor of whatever makes cons the most affordable for the widest range of people. that is speaking as someone who is broke more than it is speaking as someone who plans an area of programming, but i am certain there are many folks who genuinely want to go to cons and can't because of all the adjunct costs (transport, food, lodging) involved, who could go if it were on a campus.
there were disadvantages, however. the walk from our panel room to our dorm was rather long, and there were few options for food other than what was provided to us as staff. and we were not able to alter the layout of the tables and chairs in the room, as it was a classroom. however, the rooms also had advantages. each person had his/her own writing/art desk (valuable for creation station), and each room had its own built in a/v equipment including projector and screen. oh, and for creation station purposes, being able to post our art show entries directly on the walls was very helpful.