A separate but related issue is whether you should maximize your 401k contributions for the purpose of saving for retirement. If you do the math in detail, the long term advantage of tax free compound growth of retirement funds is enormous. Alternately, if you have very long term savings, the long term impact of taxes, if you have to pay taxes every year on the growth of the investments, can eventually add up to be enormous.
I am a strong believer in putting as much as you can into tax free retirement funds on the basis that this will help a lot in the long term.
Then you figure out your university budget. Then you try to find a university that is affordable for each child, and that is a good fit.