@CyclonesGrad, my son is non-observant, but I made a point of checking out the Hillel when we visited because it was important to me that there be some active Jewish life on campus, just for the sake of diversity. It’s a beautiful new building and pretty active from what I can tell. I know several families whose kids are active there and very happy.
http://dialog.ua.edu/2011/04/long-awaited-bloom-hillel-center-welcomed-on-campus/
http://www.tuscaloosanews.com/article/20110403/NEWS/110409930
http://www.sjlmag.com/2013/03/bama-hosts-successful-jewish-student.html
Many of my son’s close friends are from Chicago, BTW!
Re whether or not your kids will feel out of place, only they can decide that. It will NOT be like Chicago or Philadelphia or NYC, but IMHO it’s good to see what it’s like to live in area where the Jewish population is not sizable.
If your kids will will freak out when they’re invited to church, which they WILL be–it’s just part of Southern hospitality and not necessarily an attempt to convert (although it could be)–it may not be the best fit for them. People want to make sure you’re part of a religious community of some sort because students who get “plugged in” somewhere tend to be happier at a lot of schools. In that sense, it might be harder for the agnostic or the atheist than an observant Jew, but my son is not easily offended.
If you PM me, I can try to put you in touch with some Jewish families.