If you had asked this question a year ago, then the only debate would have been between Integrated Vs Mod. People would have said a Uni degree is not a neccesity.
Things are different now.
In these troubled times, University is a brilliant idea. Firstly, you have something to fall back on if the airline career doesn't work out, and secondly, if you believe the doom and gloom, it is probably best to wait a bit due to the recession - and hence do the mod route.
Due to the above, this would negate any thoughts about doing integrated right now - and btw it is not 70K. It is 70K plus 20% contingency min.
One more thing, a university degree will not make you a better pilot. It will get you to the top of the pile for an interview though if you had 10 other CV's from low hour pilots without a degree. This is unquestionable - in any industry. And if 1000 wannabees have been reading pprune for the past few months, then everyone would have the same idea about finishing flight training in 2012. And the competition would be hotter.
My advice - get the degree and go modular.
As other people have said, its only high and mighty BA that go for integrated straight out of flight training cadets.