How long ago? I've been here 12 years (first school, now work), and it's changed a lot, almost all for the better. There's a decent arts/music scene, a dozen good restaurants, affordable housing, lots of new construction, light rail coming online next year.
Not much to do in Waterloo. It's good if you're introverted and just want to game/do projects/self-improvement after work, though. Which isn't that bad thinking about it.