* University of Pennsylvania is in West Philadelphia. It's correct nickname is "Penn," not the popular (but incorrect) "UPenn." I'm not kidding - call it UPenn around a senior from that school, and prepare to be corrected aggressively.
* I've heard a lot of derogatory jokes about Drexel, (which used to be MCP Hahnemahn), which I think is due to its financial troubles a few years ago. It's a good school, with 2 different tracks (one is PBL, the other isn't), but is notorious on SDN for its lousy admissions office.
* I don't know if Temple is considered as "better" than Jefferson. It hasn't been, in my experience anyway. (Note: I go to Jefferson.) It's certainly more expensive, and is located in a...sketchier...neighborhood. (Although it's not so bad that you shouldn't go to Temple just for that reason.) It has a different curriculum - organ system based, I think.
Bottom line: Go ahead and apply to Temple if you want to stay in Philadelphia. It's a good school, although a bit expensive.