Depends on the school....
The IT department at my university couldn't care less, as long as you secure the wireless network and don't plug in one of the LAN ports into the wall jack (people do this, it takes over as DHCP server for everyone on that switch, typically 3 floors in the dorm are connected to one switch, so that's bad). As someone who works in that IT department, do we (or at least me personally) frown upon it? Yes, because people do in fact do dumb things like plug a LAN port into the wall and kill internet access to about 60 rooms and it can be a PITA to fix, but if it's done properly, then we don't care. We even encourage students to bring routers to us first so we can make sure they're configured properly and to show them which port goes to what.
Rodimus, I disagree about being able to do a lot of damage. Besides the wrong port thing I mentioned, you can't do anymore behind a router than you could while plugged directly in. Depending on the uni, you probably have to register MAC addresses before a device can use the network. If using a router, all you need to do is register the router's MAC and there's no need to register the MACs of any computers behind the router. And all traffic comes from the router's MAC, so if you do something dumb and the IT department blocks you, they'll block your router's MAC, which effectively blocks any computer behind that router.