I went to UWS and lived near Penrith until the age of 25.
UWS was an absolutely HORRIFFIC experience, I don't know if other universities are better but i found the lecturers useless, with poor english and too reliant on the text. Access without a car is mind blowingly horrible, parking was insufficient and though i enrolled at Werrington I was shifted to Parramatta three years in. Paramatta of course was not really ready, so no airconditioning ... it was just awful.
A few years later my girlfriend (now wife) went there and it seemed better to be honest, at least the campus was ready.
UTS is HIGHLY regarded, a very serious university with an outstanding reputation. Hard to get into though.
As for Penrith, if you're young and single i'd go to UTS, Penrith has it's bad areas but plenty of nice areas too. If I were you i'd rent a house in somewhere at the base of the mountains, say Emu Heights or Leonay, REALLY nice leafy areas. You'll need a car to get to UWS though. You can't stay near UWS if you are at the Kingswood or Werrington campus, the area is just bleak.
If at the parra campus, you could stay nearby.
Penrith is hot, really hot, as in 40 degrees plus in summer when it gets going. Try to rent a house with a pool if possible
One HUGE advantage of living there is that you are very close to the wonderful Blue Mountains National Park with world class hiking and natural areas. I spent three to four years walking the trails each weekend, what a wonderful place.