I think a University town would work best with a traditional campus. With a campus neighbourhood (Student union, quad, library, dorms, welcome fair and graduation events like City Living festivals etc), a fraternity row neighbourhood (greek houses, dorms, housing), an off campus neighbourhood (houses, maybe apartments), and a town centre (bars, coffee shops, bookstores, apartments)
I'm guessing the principal campus will have either a Colonial Revival Architectural Style (like Harvard, or like Sim State University from Sims 2), or a Collegiate Gothic style (like Cornell, or the University in Sims 3) due to the strong association of what a university looks like based on the American media output. I know not everyone lives in America, but as someone who attended a former poly in a former industrial estate, as well as a redbrick in a traditional suburban campus, the latter is much more engaging and conducive to student life and activities, whereas the former was basically an office park people couldn't wait to get away from.
