I figured the gap would be quite large, so my goal now is to graduate from the two year program I'm in now, so that I have at least something under my belt, and then move on to bigger and better things at a bigger and better school.
Thanks a lot for the comment and advice!
Let's talk about money.
Algonquin's tuition is what, $1,212.20 per 13-week semester? I'm hoping that's for 15+ hours per week of classroom time (a.k.a 5 3-credit courses), counting only time with a faculty member, not TAs. Plus some bonus lab/TA time, maybe, depending. Based on a little website, let's look at a few Real Schools (a few in your city, a few in mine). UOttawa says they charge $2,710.65 for Fall 2011 (again, presumably for 15 hours of classroom time a week, plus labs). Carleton astonished me at $6k+, that's freaky high (PS you US people, I'm not talking about the U.S.). At my end of the country, SFU charges $163.80 per credit (i.e. multiply by 15 for a full load, getting $2500). UBC is marginally cheaper. None of those places is MIT or Waterloo, but at least UBC and SFU are _fine_ schools.
Last year, you were working as a junior dev with no edumacation, presumably no serious prior experience, but you know enough to ask "what distribution", so probably you're useful. Making what, gotta be more than $10k a semester pre-tax ($30k a year)? Gotta be at least that much, although I dunno what Ottawa rates are like. Can you do that job while going to school? Do you want to? Your real cost of going to school is that you lost access to that $10k-$15k for the semester. The difference between $1k tuition and $3k tuition just became kinda dinky, eh?
The point is, the difference in tuition between Algonquin and UOttawa should be ignorable. You've already forfeited $10k+ in salary, and $1k in tuition, PER SEMESTER, so $1k extra is kinda icing on the cake. Optimize correctly! Don't waste your life at the wrong school over such a small difference! (I admit Carleton's apparently $6k makes me hesitate a little).
Now, teaching quality.
Teaching quality MIGHT be great at a college, I can't say. I went to Capilano College (now University) for 2 years, and I got some really really great instructors. But if that's not what you're getting, why are you wasting money, and more importantly time? Bad GPA you need to fix?
And listen, if the program has great teaching (not that you'd know at two weeks in), then it'll be a viable foundation to build on at a bigger/better school. But if you're getting half-assed teaching, then you're wasting time, not getting something under your belt. (If they teach badly but you already know it, you're wasting time. If you don't know it now and they don't teach it, wasting time!)
And now to your original point about peers. Yeah, a community college is gonna attract a lot of marginal students. I met a few awesome and very smart people at Capilano College (smarter than me), but I gotta admit, they were a lot fewer and farther between than what I got to meet at SFU. Partly that's just the size of the pool of potential peers, partly it's that larger schools have better structures in place to help you FIND those peers (more societies, etc).
Half the point of going to school is to meet awesome peers who mutually inspire you, who you can have great experiences with, etc.
I guess what I'm saying is, if the kids are driving you batshit, you should see how fast you can get your ass into a better group of kids. Of course, the problem could just be you. ;)
Of course it sounds like you're definitely struggling financially, so you may not have much choice in institution or program. Here in New Zealand we all get interest-free government loans to cover the costs of tertiary education, so in one way I've been lucky just because of where I was born. It is very hard to suggest what you should do, because the systems in place here are so very different to in the US.
If in the end you can't do much about your situation, make the best of it. Ace every assignment, tweak them with your own extensions which add extra functionality or go beyond the criteria of the assignment. If you are not being challenged by your study program, challenge yourself. Class is a very small overall part of your education; go out to user groups or other social group meetings (after all, who you know matters just as much/more than what you know), build things that teach you something new. You will learn more from these people and by yourself than you will from any test or assignment. Never in the rest of your life will you have the time, energy or resources to push yourself as far as you can while studying.
If you show passion and intelligence, people will believe in you.