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At many state universities, students drop out of engineering and hard science majors in large numbers.
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This is actually true even at most elite colleges. Even Harvard loses more than two thirds of its engineering majors to other departments before graduation.
One of the biggest advantages MIT offers to its science and engineering students is a tremendous support network. It is virtually impossible to fall through the cracks. With frequent p-sets and semi-monthly exams every student knows exactly where they stand well before the finals. My D was struggling with organic chemistry and got a grad student as tutor the next day. She never felt she was left to sink or swim. If she does not understand something she always feels she can ask somebody in her dorm, even an upperclassman for help. Since she declared a major early, she now has regular meetings with her academic advisor and department administrator who make sure she is not overly stressed.
The effect of the dreaded curve is also exaggerated. For some classes it is actually surprisingly generous. The typical student does not face the math olympian in introductory classes, simply because the top students are skipping all these classes in the first place. MIT also offers lots of ways to minimize the effect of grade deflation: P/F first semester, very liberal drop dates, exploratory options sophomore year, P/F options junior and senior year, UROP for credit, HASS classes... With some reasonable planning a decent GPA is achievable, especially since most students do not compete with each other for grades.
As far as her dorm, she couldn't be happier. She shares a huge double in the ultra-modern Simmons Hall. She has a private bathroom and HD cable connection in her room, a fully equipped gym, laundry room, modern kitchen, study and TV room all down the hall. She also has an all you can eat cafeteria, late night cafe, meditation room and even a movie theater in the building. Talk about a residential college! Her cousin visiting from Brown just could not believe her accommodations. Some other dorms may be "funkier" but she loves the convenience. Next year she will move to a sorority across the Charles River and is already looking forward to a very different experience.