I would generally agree with all of this. I'm sure some of the sentiment comes from how US News ranks these schools each year.
https://www.usnews.com/best-colleges/rankings/national-universities It's a status thing in so many cases. That's not to say these all aren't good schools, but the whole status thing has gotten so out of hand. All in all, I think a lot of it is a $ game and any big school knows it and plays it to their full advantage. As much as I enjoyed the social aspects of my university, I don't feel my degree was worth the insane price tag. Just thinking that my college degree would cost at least $250K today makes me sick to my stomach. I've heard similar statements from people who went to schools at all different levels of selectivity and prestige...like they could have just as easily been doing the job they're doing now at a lesser known school or something with a more reasonable price tag. I used to work with a guy who started at Carnegie Mellon, couldn't stomach the price and moved back home to go to Rice to at least save money on room/board. He was doing the same job I was doing with that degree, and he was so deeply in debt, he couldn't afford the dental care he so desperately needed. At the end of the day, while I get that there's a need to have schools that fit different kinds of people, the whole prestige game and related cost shows that this system is broken.
I would also strongly agree that there's a huge discriminatory element in admissions. Granted, I know not all public schools in this country are created equally and many kids never get the resources others get, simply based on zip code. Sure, things like redistricting and bussing has been done, but there is still an awful lot of inequality in the system today. I know the lack of scholarship from UT for that one girl factors into the state being obligated to admit kids that have the scores and grades that tick all of the necessary boxes, but you'd think they'd still want to do more to attract really bright in-state people. Still, I saw it where I grew up too. 94% of my graduating class went to a 4-year college or university, the top 20% of my class went to top tier schools on that US News list, and our annual college nights were full of hundreds of schools begging for our students to apply. Meanwhile, a few towns over, you have none of this because that school doesn't get the same looks and such as ours because for whatever reasons (funding, location, zoning, demographics, etc.) they don't get the looks from colleges.