I did my undergrad at UNSW, masters at the London School of Economics and am now doing my doctorate at UWS. Having experienced the reactions to all three institutions, I can tell you that UWS gives you the most "oh, okay, right, well, I suppose" type of response, which is preposterous considering the standard of education there. And I think you're right, RF, that changing the name is a good idea and for exactly the reasons you say. I always feel like it makes UWS sound like it's somehow subordinate to Sydney Uni or something, when it really is an institution in its own right. What I don't agree with is naming it after Arthur Philip. Chifley, I like more. But even that doesn't really say UWS to me.
I think what makes UWS different to other institutions in Sydney is its diversity and vibrancy, both culturally and academically. In the Humanities, which I'm more familiar with, there's a lot of cutting edge stuff going on that just doesn't get the same look in elsewhere. The student population is more socially, culturally and geographically diverse -- there's a huge Muslim population, for example, as well as more kids from disadvantaged backgrounds. It's got its own identity that is very much New Australia, so to speak, and I don't think Arthur Philip captures that.
Of course, the devil's advocate position would be that UWS celebrates Western Sydney and is part of an ongoing effort to shake off stereotypes about the area. Changing the name wouldn't help do that.
Scarfy --- where do you work? I'm in the Writing & Society research group...