It really depends on the child and the circumstances. Our oldest wouldn't consider staying home, she wouldn't even consider any school in our state! She chose Boston, and has been thriving there. We've moved further away, so she can no longer come home for a quick weekend, but we're all okay with that.
OTOH, DS19 didn't know what he wanted to do (still doesn't). He started at the local community college, lives at home, and commutes by bus (he doesn't have his driver's license). This works for him. He's, shall we say, slow to mature, moving away from home would have been a disaster. His CC has many good programs, and feeds into the state schools--if he goes that route, he can also commute to a branch of the 4-year state school, and still stay local. In fact, the 4-year school is slightly closer than the community college.
One thing that I've noticed, and this is purely anecdotal, but it seems like people in the Northeast are more inclined to look at CC as a "lesser" option. Maybe because there are just so many colleges in the Northeast, I don't know. But here in NC, it's just considered one decent option out of many. Also, it seems like in the South, students are more likely to stay in their home state, if not their home town, for college. When I mention my DD's studying in Boston, people think I sound so exotic. Back in NH, nobody would bat an eye at attending college in Boston. I thought Boston's reputation as being a big college town was well-known, but maybe not.