I am not sure I know what grade deflation is. Any program which is ABET accredited and worth its salt is going to put together a quality program. UA is no exception. (It is one of the original schools which have been continually accredited since it began offering aerospace engineering degrees. Here is a link to some history on UA’s aero program: http://aem.eng.ua.edu/about/history/ and here: http://aem.eng.ua.edu/files/2011/07/history.pdf )
A professor at a large, ‘name’ school told me this directly: The work completed at any accredited school for an aerospace engineering degree is, by nature, exactly the same - it is jammed packed to get it in in 4 years, and the courses might be taught in a slightly different order, but it is exactly the same no matter where you go. There is a structures component, a propulsion component, a materials component, etc. So, IMO, it is important to find a school where you fit in and LIKE the program/staff/faculty/surroundings/etc., because the material taught will be the same. Here’s what he didn’t tell me: be sure to look at all the ‘extras’, too, like what aero-related clubs and aviation chapters and teams and projects and research you can be involved in at the school you are considering. It can be harder to be involved and get experience, if you are ‘competing’ with 100 people, as opposed to a few dozen.
I had many reservations about aero at UA when my son was first considering it…and those reservations ALL turned out to have been completely unnecessary (on my part!). Of the 85 cohort aero students who took the introductory aero course in fall 2012, there are about 35 solid ones left in the program now, I see (as juniors). (I noticed in fall 2014, there were 103 aero students in that intro class, FWIW, so the program continues to grow and draw more and more students.) In 2012, UA graduated 15 aerospace engineers; in 2016, they are on track to graduate over 30.
PM me for more info on this program at UA, if you are serious about attending there. Good luck!