re: Co-worker's daughter is considering Baylor for undergrad

First rule, don't ever ask an A&M grad(or student) about higher education. For the same reason you don't ask a midget about dunking a basketball. It's rude and they won't have any experience or insight. A&M is an indoctrination factory where they focus on rote memorization, brainwashing, and reinforcing group think to the degree that critical analysis is eliminated and the subjects become drones. A&M grads tend not to leave Texas, don't attend graduate schools(esp outside of Texas) and aren't in the top medical or law programs even in Texas. Ex: the A&M regents bought a law school, managed it so poorly that the students quit applying and had to shut it down.

If A&M(and even UT) were such great 'deals' from a price standpoint, why are over 35k students opting to pay the prices of TCU, SMU, Baylor?

For the same reason you don't like standing in line to renew your drivers license. If you simply want a college degree and it's not a competitive field and you want the diploma on the wall without a big challenge, then go stand in line at the DMV/get a state university education.
But if it's a competitive field or grad school, attending a state university at least in Texas, is sort of like leaving it to chance.

Anyone that suggests all diplomas are created equally, probably doesn't know much about how others earn diplomas.
I'm sure the Ags here can tell us that the College Station experience is second only to Harvard. But I'll let them tell you that.