I lived at home for Uni.
The first year I spent all my time in my bedroom playing Counter Strike, arguing on the internet and wondering why girls didnt like me whilst my Uni mates, mostly female, kept asking me to go on nights out.
Miraculously, by the time I realised I was a **** they'd not given up yet so I sorted myself out and the second year was absolutely amazing. Living at home made very little difference, I was out 3-4 times a week and it took me about the time to drive to the Union as it took them to walk there anyway. The added bonus was that I had enough money to run a reasonably nice car at the time and enjoy my other hobbies as well, whereas they were all skint. Was great, had an amazing time.
Third year was placement year. Got a reasonably local placement. Another good year - living at home meant again I had plenty of cash and was able to waste it on executive saloon cars. Spent loads of time at my girlfriends anyway.
Final year - like the second year only I spent more time round my GF's in private halls so I got a bit of the 'living away' experience and frankly I didnt think I was missing much, loads of morons making stupid amounts of noise at 4am for no discernable reason, slamming doors, etc etc. Whether the experience is any good for you rests on who you live with. Shared house with mates? Epic. One of my mates lived like this and the amount of random stuff was hilarious. However if you get stuck with random idiots it can be hell.
So yea. Worked well for me. Meant I got to do Uni, have money, have a good time and have a social life without being crippled with loads of debt.