I think referring to Exeter as a 'bustling city' might be a bit... well, wrong. Apart from that, Exeter and the uni are absolutely perfect - I spent three amazing years there and I wouldn't change anything about it.
Although it was perfect for me, it depends what you're after. If you want a 24-hour party city, you might be disappointed, although the atmosphere is so friendly you can always find someone to drink with until the early hours.
And, re the hills, yes Exeter is quite a hike, but only when you compare it to London. Coming from Plymouth, I hardly noticed them.