Nothing as beautiful as in the mountains, but there are lots of nice places. There are also many tourist attractions near Madison which can be good for a bit of kitsch. Easier than a big city. Most people seem to do just fine. I wouldn't say easy, but it's certainly possible.
Most grad students live off campus.
Most students live in apartments or houses off campus. Parking around the department is a nightmare. Buses are free. Biking is easy. Walking is easy too.