How common for MT majors to go with a school that's academically less challenging?

Just another point - I don’t think this is an issue exclusive to musical theater majors. Many times students elect to attend schools with less name recognition or academic reputation for a variety of reasons. Cost, location, a particular course of study, fellowships or opportunities to study abroad are just a few of the many reasons kids choose a certain school. I am a true believer that you can get a great education anywhere you attend. You may have to seek out more challenging classes, special projects or independent courses of study to find the type of academic challenge you desire, but you can find ways to push yourself beyond the basic curriculum if you wish. I think for every person, what matters most to them in the college selection process will differ. But be true to yourself.And go where you will be happiest and get the education you are seeking. Don’t automatically discount schools without really understanding what they have to offer you. In the end, the best decision is what makes the best sense for you and your family. Not what anyone else thinks.