As a Loyola third year student, I obviously think it's a "good school." I'm not really sure how to quantify "good" since I don't know what you're asking, but if you're just talking about rankings, someone can probably just look that up - although we're not a huge research school, and that seems to be the driving force of rankings anyways.
As far as location, it's not in the city of Chicago, as you know. It's definitely nowhere near as far from downtown as O'Hare though. It's about a 15-20 minute drive from downtown to Maywood (where the medical school is) in just about any traffic other than gridlock rush hour (and that really is never when you will be driving to/from school). Also, no need to worry about the main undergrad campus (or the law school campus) as you won't be doing anything on the other campuses, just the medical campus.
I have lived in the Chicago area my whole life, and currently, I live up on the north side of the city near wrigley field. Even that commute is only about 45 minutes - occasionally an hour if traffic is bad, sometimes 30 minutes if traffic is really light (although, really light is rare).
I would also point out that, from a commuting standpoint, University of Chicago is almost as long of a commute from the center of the city as Loyola - not to mention, no one really lives "downtown" because there really isn't much to do downtown after the workday ends. As a student in your 20s, you'll probably want to live somewhere on the north side or the near northwest side of the city where all the young people live - lots of bars, restaurants, etc.
Definitely don't let location be your deciding factor on Loyola. It's a great school, and we have some of the happiest students of all the Chicago schools (they do some sort of survey that's published, so i'm not making that data up).
It's very doable to live in the city and be a student at Loyola - and it's also very doable to live close to school and take advantage of all the city has to offer on a regular basis as well.
The school itself has a very clinical focus - lots of patient contact starting very early. We do block scheduling for the first year, so you're only concentrating on one course at a time, which makes the adjustment to medical school a lot smoother. The facilities are great - we just opened a brand new wing of the hospital, we have one of the nicest gyms I've ever had the pleasure to be a member of, our medical school building is only about 10 years old and was actually designed around our curriculum.
Anyways, I think I've rambled enough. If you have any questions, feel free to PM me. I'm starting my surgery rotation tomorrow, but I will try to get back to you in a reasonable amount of time.
(for what it's worth, i had to decide between the chicago campus of UIC and Loyola when I applied, and UIC didn't even come close in that decision, despite location/shorter commute)