pretensions

Mine were the same way about Stanford! As soon as I mentioned I got accepted, it was as if that was my only option (even though I was still considering other, lesser known/ranked schools). It drove me a little crazy, but it's really just because those not in the field know the name, that I received such a response (my PI started telling people I was going to Stanford before I even made my decision! what's up with that?). I think it's more important for your future job prospects what people in the field know, not what people outside of it do. You might also want consider the fact that if you are taking classes you don't enjoy and doing work you aren't interested in, you might not succeed as much as you would someplace you're doing what you're passionate about. I guess for a Master's, since it's shorter, some people might stick it out, but I imagine it won't be as enjoyable, or as easy. 
These are just my opinions, so I'm sure you'll be great whichever you decide; these are all great options so really, you can't go wrong with either. In the end, I simply went with my gut.

I think it really comes down to what you want to do after you graduate. You say either a job or academia is fine with you, but there must be one you're leaning towards more. If your undergrad degree is in mechanical engineering and you want to stay in that field, I would look for a job in that industry first so you can get some experience before going to grad school, since most engineering students I know can find a job fairly easily after graduating without having to go to grad school.
 
Otherwise, if you do want to go into academia and you don't mind switching to material, then I would choose the funded PhD so you don't have to pay so much out of your own pocket or go into debt.
 
(As an undergrad attending UMich right now, I will agree that our engineering programs are highly regarded, and there are decent career opportunities because of the automotive industry, like you said. However, winters are brutal.)

Hi smooshie!
 
I'm also planning on pursuing a Master's at a j-school in the fall (either Medill, Stanford, or Columbia), so these are just my thoughts based on what I've researched online:
 
As far as program prestige or rankings, I've found that Medill and USC are almost always among the top 5 j-school rankings, while NYU is usually in the top 10. This doesn't necessarily mean that Medill and USC are much, much better than NYU, but I think they have a more recognizable prestige in the journalism industry.
 
On the other hand, NYU has a huge plus in that it's located in the mecca of media and publishing. But like CFBrown said, both USC and Medill are the dominant journalism programs in their respective areas (although Berkeley is also supposed to be very well-regarded on the West Coast), so there will probably be plenty of opportunities in the local area. Many j-school students also relocate to NYC after they graduate, so if it's really important for you to get a head-start in NYC, then location is also something to think about.
 
Best of luck with your decision!