Would you choose a "no frills" college or university over a typical residential school in the US?

CCs do partner with regional state universities to offer 4-year degrees. It’s a great option with none of the residential cost.

Our local CC offers several 4-year degrees from three of the state universities: http://www.pstcc.edu/instruction/uc.php#.VXtk8_LbLmI

Yes, it’s similar to the German college model.