Inquisitive,
In answer to your question, difficult for me to answer without revealing my true identity.
To clarify I came very close to working as a FTE at one point I time, but with a CPL/IR to keep current, I couldn't justify staying in a low paid trainee airworthiness position while waiting for the FTE promotion. I had completed the introductory FTE course (as most holders of an approved Aeronuatical degree will have). My Engineering background in recent years has been heavily involved in analysis for certification rather than direct involvement in flight test.
Having done both engineering and flying, I know I would like to be able to have a job that combines the two, as said from a civvy background FTE is the position which allows you to do both.
Get your degree and get your PPL, if within 5 to 6 years it looks unlikely you are going to get the break into an FTE position you can still use your PPL as the basis for a modular CPL.
You don't need to make the decision now. As a lot of people have said you can choose to work in Aerospace it isn't always easy to choose exactly what you do in Aerospace. I have found it was always a case of what opportunities presented itself when you are looking.
The reasons you have cited are also why I think I would prefer FTE.