It's pretty rare that some of these cities actually impact the recruiting decisions of players. And it depends on what you consider a nice city for living.
Other than the University, there is very little appealing about living in most Big 10 cities. (East Lansing? West Lafayette? Bloomington? Iowa City? State College? Lincoln?...the list can go on) Same for a lot of high level recruiting schools in football and basketball alike. (Tuscaloosa, Durham, etc.) There are only so many schools in places like LA, Miami, Atlanta, etc. And many recruits are not looking for a big city anyway.
All things considered, I just don't think C-U places the athletic programs at any kind of disadvantage.