As far as learning institutions are concerned the state gets more for it's money by locating in smaller towns where costs are less. Land is cheaper and small town city councils are more open to suggestions from large state institutions like universities. It should allow tuition costs to be lower which is a good thing. Both tuition and housing are much less expensive where I live, a small town with a state university, than they are in St. Louis MO, the closest major population center. It probably helps stimulate economic growth in the state by having several colleges located throughout the state in smaller towns rather than concentrated only in urban centers. It also helps spread more progressive ideas. The town I live in sucks but were it not for the University it would suck much more. Look at a red state map broken down by county and voting records and all the blue counties you see generally have a college or university.
I thought the idea of Capitals being located there was to prevent undue influence by municipal concerns over rural concerns as well as to try to lower the level of corruption. Not that I believe this idea actually worked but I thought this was the rationale.
John Thornton