UVM is a great school but its reputation is not on par with that of Middlebury. Middlebury also provides a different experience with smaller classes and more contact with professors. My daughter attends another highly competitive LAC and discovered the benefits of small classes when she needed recommendations for summer internships. Her professors knew her well and were consequently able to write strong recommendations. Her interviewer commented on both the recommendations and the reputation of her school.
If it can be reasonably afforded, a diploma from a school like Middlebury (and the network you will develop) is an investment.