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> 2.6 is considered ok for engineering students at top universities

I don't know anywhere this is considered "ok". At my school my GPA was considered just "Ok" at 3.9+.

Grade inflation, look it up. If 3.9 is "OK" your class's grades have compressed to the point of meaninglessness.

I think we had ~150 CS grads, and about 15 valedictorians with perfect 4.0's.

Either your promotion is made of geniuses or as @sk5t said your GPA is indeed meaningless.