Let me tell you a little something about Texas State.. today, we have school pride. Just look how long that billboard lasted. Do you think it was the community that ripped Grande? No. It was noticed on a weekend and by Monday it was taken down. We are sick of being in UT's shadow (even though the whole state is, we get it a little more since we are the closest), and try everything possible to get out from under it to differentiate ourselves.
Now, our Alumni (the SWT ones) are a different story. They tout their burnt orange like every other bandwagoner (my bro in law is a prime example - he holds longhorn football parties weekly, but attended SWT in the 80's).
And to your UT reject comment, I think this can be said for all other state schools outside of TAMU. UT rejects some good students and we, along with the other big schools, try to swoop them up. It's not like they come here to transfer out the next year, look at our retention rate (higher than UNT, UTSA, UTEP, on par with UH, and two percent behind Tech).
We do get respect from the longhorns, but only in baseball (they even come to our house). We always keep the game close and shoot ourselves in the foot during the last inning. The last 3-4 I have gone to against UT, we lost by one run.. and remember, this is to one of the nation's most respected teams.
I'm a student now, and while I didn't apply to UT, I was accepted to Tech and TAMU. I chose Texas State and not once have I regretted my decision.