Totally disagree.
However, I didn't interview at UTH, so I didn't observe the facilities in person.
TMC is great, but consider that you will only (probably) be rotating through one hospital, so what's the big deal. You will be exposed to an excellent spectrum of pathology at both UTH and UTSA (where University Hospital has been ranked as a top-15 teaching hospital for the past few years.)
UTH and UTSA have similar average board scores, IIRC.
UTSA has a much lower cost of living, and I personally like San Antonio much better than Houston.
UTSA has the option to spend a year in Harlingen where there are no residents competing for attendings' attention.
UTSA receives more research $$$ than UTH, and wants to move toward more and more research in the future (probably meaning more $$$, which attracts more/better faculty.)
I don't think it's as clear-cut a decision as you make it sound. I always thought of UTH as "the other school in the TMC," but then again, I didn't interview there, so I didn't get a chance to be wowed by the school.