I'm a student living in Bat Galim, and I have to say it's not as bad as it sounded to me when I first heard about it.
When I was accepted last year, I read about Bat Galim from forums like this and thought it was a super ghetto that I'd be afraid to walk in at night.
It's not. It's not the most upscale neighborhood, but most of the people in it are Old Russian couples, Soldiers (from the Navy Base), and Students from the Med School (American and Israelis).
It's right on the water with an Okay beach, has a train station, a few restaurants, 2 supermarkets, and most importantly, the school. When I lived on campus the early wake up to get on a bus or cab to school was killer. And if it was raining sometimes traffic stood still for an hour. Having to commute can add 2 hrs to your day with time waiting and traveling. It's a pleasure to wake up, jump in the shower and take a 5-10 minute walk to school.
Kiryat Eliezer is slightly farther away from the school and only moderately nicer.
We have about 12 out of the 32 students in our class living in Bat Galim now with more looking to move for next year.
We have a lot of fun here, shabbat dinners for 10-15 people, days at the beach on the weekend, and a good contingent of people to go up to the Carmel (where the major nightlife of Haifa is). As more people move here, it gets nicer and nicer.
I would highly recommend living in Bat Galim for at least your first 2 years (pre-clinical), but that is my personal preference. If you decide it is right for you and need help finding an apartment, get in touch with me and I'll tell you where to look and even point you to some nice apartments. If you're thinking of taking a different route, get in touch with me and I'll give you info about life where you are looking to live.