I think a lot of it depends on the school and how many people you know going into it.
I personally lived on campus my first year of college, and had a pretty good experience. Was a great way to meet a lot of other people my age, and easy to learn my way around campus.... but I also went to a school of 40,000+. My next three years I lived off campus in a house with some friends and had a much, much better experience. Not saying living on campus was bad, and I would probably do it again, but for me it was much better living off campus. Then again, at my college it was pretty common for freshmen to live on campus for 1 year, and then move off.