Living out of states, I can't imagine someone has the same degree of disdain for their rival. Part of the reason I grew up loathing BYU was because I was constantly getting into it with BYU fans at school. I can't imagine he was constantly sparring with U fans his whole life if he lived out of state.
Second, the U should make every effort to offer prominent LDS kids. I have no idea if this kid if LDS or not, but I assume he is because BYU has always been his favorite school and he committed so quickly. The U can still offer an environment where there are lots of fellow LDS members to hang out with, prominent LDS programs/institute, an LDS coach, etc. It is somewhat of an alternative to BYU's atmosphere (still very different I might add).
I think your 2nd and 3rd points are pretty valid here.