Pros
Great benefits package -- the best I have seen anywhere. This is something you may not realize until you have worked a few other places. This includes not just health and dental, but very generous paid time off. The hours are really good as well -- some departments give flex time, allow you to work from home a little bit, etc. In the summer the work week is a little shorter, and even during the academic year the work week is only 37.5 hours. The campus is beautiful, and it is a pleasure to work with many of the professors on interesting projects.
Cons
Some departments or sub-divisions of departments can be very hide-bound and traditionalist in their approach to things, rather than forward-thinking. Some management personnel definitely don't respect their employees (but others do -- it really depends on the department or sub-division of a given department). Mostly we're talking about IT-related positions. It's also true that as an IT professional you can get paid more in a corporate environment. Another downside to the academic world is that people become very insular and protective of their turf and their ideas, and not prone to trying out new technologies or ideas. Again though, this varies widely from one manager to the next.