"Its better to do mediocre at a great university than great at a mediocre university."
I would agree with the above quote. A middle of the pack student from a tough curriculum is usually better than the upper tiers of a soft one. Of course I always evaluate candidates as individuals, not as members of any "group".
I have a policy of quizzing applicants. I've done this for decades with no trouble at all. The questions consist of problems directly relevant to the job scope. Also, they are *already solved* problems. I never seek free advice through a quiz. It works very well. Students who bomb the quiz generally have little to show regarding academics, experience, oral interview skills, etc. Those who ace it were candidates who already looked very promising.
You would be amazed at some of the basic questions a lot of applicants miss. Not even in the ball park.
In summary, a tough curriculum, and being surrounded by the best of the best students forces a person to develop their full potential. There may be some individuals who are self starters and could work hard without tough competition. But, a class full of bright students provides diverse input. The papers, presentations, lab work, and answers in class are better with a bright class. Any individual is going to extract more in such a class.
To me, it isn't how big or expensive the university is, but rather, how tough. It just happens that MIT, Caltech, Stanford, Case, etc. are both prestigious and tough.
For the record, I went to Youngstown State for BEEE/MSEE (aka UCLA) back in the '70's. From 87-90 I taught at Univ of Akron. In 07 I returned to grad school at Case to pursue the doctorate. Case is very tough. But the Ph.D. is always tougher than BS or MS. YSU is tough as well. U of A is one I never studied at, only taught there. I was not tough, not easy. Some of my former students love me, others hate me, and some are ambivalent.
A highly motivated individual will find a way to succeed. A prestigious school gives a good head start, but after 5 to 10 yrs. in the field, the best individuals rise in spite of prior circumstances. Does this help?
Claude