I actually wonder if the whole dorm atmosphere is one of the big reasons why so many Freshman struggle with adjusting to college?
I think this depends on the personality of the student & the way the dorm is run. My daughter likes being in a dorm setting, but then she choose the all girls "quiet" hall this year. Having been on quite a few college tours in the past few years. Many schools are mostly building "suite" style dorms when they build new dorms rather than traditional style hall dorm. These work better for many students but are sometimes only offered returning students.
Many schools require most freshman to live on campus. And it can be a lot easier to make friends & get involved in campus activities when this is the case. I think there are a variety of reasons many students have trouble going away to college. And why a dorm situation may be a problem for some, I'm not sure many students are ready to take on paying rent, utilities, buying & cooking all their own food.
Plus Depending on the locations of the school dorms can be cheaper than living off campus. The cost of living on campus includes all utilities, usually cable & internet. Where my daughter goes to school this would be the case, particularly as she only needs housing for 9 months. And if you put 6 young adults in a tiny 3 bedroom apartment to cut costs, there can be even less space & privacy than in the dorm.