From a libertarian/utilitarian POV, the processes at those schools are "less wrong" in that they are more likely to admit a student with perfect test scores, incredible grades, and little if any extracurricular activity outside of modding xBoxes and lan parties. Those schools are looking for raw smarts and technical aptitude...
<Ivy League Douchebag>...which is why so many M.I.T. grads end up working for Princeton/Harvard/Yale grads.</Ivy League Douchebag>
At the Ivies, lots of kids apply with perfect grades and scores. Those schools have the luxury of passing on most of those kids in order to select the ones who are truly interesting and/or clearly hell-bent on changing the world for the better.
In my own case, I was applying from a small public high school in a resort town in Western Michigan. Having gone back and pulled my files once I got the admissions job, my read on why I was admitted was because "kid is being doing more with what's available to him in this odd part of Michigan than the other kids we see in his state, he also sounds pretty cool and fun and everyone likes the guy. Plus he's in the top 1% of his class."
So I was admitted to bring in some color and culture, despite being a white male. Despite being "the smart guy" in every social situation growing up, that wasn't even a factor in why I was admitted. My credentials put me squarely in the middle of the pack academically unbeknownst to me. That's humbling but also great self-knowledge to have about oneself. Sometimes I think students at these schools should be told why they were admitted. I probably would have felt better about being the president of half a dozen clubs and playing in the most popular band on campus had I know that's why they brought me there to begin with. :)