I lived in a small dorm with a crappy roommate (actual roommate, not flatmate). So I didn't spend any unnecessary time in my room outside of sleeping. I hung out at the library, cafeteria, etc and went to random talks/activities on campus (there are a lot of them on a big campus).
No windows? Sunlight alarms exist. They're great. Modern AC is also great.
I would definitely trade the privacy and security of private quarters for a tiny window that would probably be facing another dorm building.
University campuses are not prisons or suburbs. You can move freely and there are fantastic amenities in walking/shuttle distance. Affordably living in the thick of it, with private quarters, is an incredible luxury for most students.