Please don't shove that US News list in my face, I've seen it enough times. I want people who have witnessed it first hand to gimme advice. How well does it prepare you for grad school Physics? How about the Honors program?
I'm a Physics/Math (Applied) major there and so far I've been satisfied with their undergrad programs. While I haven't attended other programs to use for comparison, I think that if you are a Texas resident, it would be hard to get better value for your money.
Two issues that hurt UT in many of the other departments are the large class sizes and high student-to-faculty ratios, and this is reflected in some of the overall university rankings. However, this is not really a problem in physics and math. Your upper-division classes are usually in the 15-35 students range and many professors teach only one small class per semester, so they can usually dedicate plenty of time to you if you need it.
The faculty itself is also top-notch in both departments. Weinberg may be getting too old to be a good lecturer (he hardly lectures physics anymore), but there are plenty of professors in the physics department that are extremely well-known in their fields. The math faculty includes an equally large numbers of professors that have made significant contributions to their fields, won prestigious awards, etc.
If you put those two factors together, you get plenty of research opportunities with well-known professors, which is another important factor to consider. You'll also find a lot of variety in research projects you can get involved in.
Also, Austin (the city) is great, IMO. I have no idea what you like, but you should look into that.
However, like I mentioned, I don't really have the elements to actually compare it with top schools. If you can get a scholarship in MIT/Stanford/Caltech/etc. I would definitely go for it. But if you decide to go to UT, you can feel safe that you are getting a very solid physics/math education without having to get yourself deep in debt for it.