I'm a grad student right now in the EE program. Academically, I'd say the school lives up to it's reputation as one of the top 10 engineering programs. Overall the profs, labs, etc. are much better than what I had at my undergrad at ND. The classes are also MUCH more difficult that what I was used to, although I am a grad student. I am not sure how bad the lower level classes are.
At the engineering career fair last fall, I notice a lot more companies were in attendance than what I saw at ND. All of the big tech companies like to recruit here - AMD, Intel, Nvidia, MS, Google, etc. I am a member of HKN here and the members don't seem to have any trouble getting good jobs.
There is also a lot to for college students to do in Ann Arbor, although my impression of the place might be a bit biased since my only basis for comparison was South Bend, which isn't really a college town.
If you do engineering, you will be on north campus, which kind of sucks because the only things up here are academic buildings, so the only reason people come up here is to go to class. All of the bars, restaurants, etc. are down by central campus. It's a short bus ride away, but I always feel isolated spending every day up on north campus.