I did a virtual interview with my #1 choice, which was located halfway across the country. You both have more "skin in the game." The officer knew that the school was my #1 choice and I think that helps the approach and focus of the interview. If you do super-well, they can even help in some way with admissions (I guess the downside is if you do poorly, or even just average, that can be a double whammy - a ding with ROTC generally an a ding for your #1). My local university was not even listed in my school choices, so that would have been an awkward question if I had been asked why. That said, if we were not in the middle of the pandemic where officer interviews were mainly virtual, I'd likely have gone with the local university. It would not have been easy to pay for for the travel to my first choice college, and I'd also have to miss school and practice. I also present much better in person than on a screen (I think this is likely true for most people).
Good luck!