When I was trying to decide where I was going to go to school, I factored in the distance to a degree. I decided I didn't want to drive all day or have to fly to get back home for breaks, but that was me. I ended up going to a school that was about 3 hours away (out of state), and that was about perfect: far enough away that your parents don't visit all the time, close enough to go home if you have to.
That said, I wonder a little how things would've been different if I'd gotten completely out of the Midwest--I think I would've liked it, personally. Just go where you think you'll do the best and have the most fun. I read somewhere that if you had an exact duplicate that went Ivy League and you went to Podunk U, you'd both be making about the same money in ten years.
I'd also say that if you haven't lived out of state and out of the reach of your folks by this point, you should give it a shot now. You learn a heck of a lot about yourself by living away from home.