The peer group may definitely dramatically different from what I can tell, but if you're a serious student and there for the learning above all, very straightforward to get into a school that will teach you just about anything you could learn at Harvard or any other Ivy League or similarly 'elite' school.
Most of us are aware that Harvard/Stanford isn't the end-all, but still chase those institutions anyways.
I am from a family of 10 kids and we all went to and were accepted to different schools (all non-private/non-top tier)...there is a massive difference in education levels between schools (maybe it won't affect your career trajectory, but I didn't go to college for a career, I went to learn and be surrounded by others of my caliber).
The connections you make are what the elite institutions really do to differentiate themselves.
In practice, this is pretty much the case. State schools (e.g. the University of Virginia, University of California-Berkeley, Georgia Tech, etc.) are often quite good in terms of the education provided, and offer lower tuition rates to in-state residents. Forbes and U.S. News & World Report maintain rankings of the top 100 or so colleges in the United States; my school was ranked in the 60-70 range for computer science. Having spent a number of years at big (and small) companies in the Bay Area, I feel it more than adequately prepared me for the workplace.
Maybe the sense of “a few elite schools, and lots of bad ones” is reinforced by the popular media? Hollywood tends to focus on just the Ivies and MIT.
One way “second-tier” universities can get around this problem is through mandatory co-op and internship programs. Push students to explore the job market early on, and they’ll start their post-grad job search with confidence, a stronger resume, and a network of contacts from previous co-ops and internships. This network may even include students from “elite” universities, who funnily enough often end up in the same internships and entry-level roles as their less-pedigreed counterparts.
I did more internships than average at my school (the norm is 1, I did 4) and while I did cultivate contacts with “elites” I’d disagree that they end up in the same entry level roles as people like me. If anything there’s a bigger difference!
These schools are equally, if not harder, to get into as a first-year freshman.
Also, schools with higher acceptance rates do not necessarily offer lower-quality educations, or have lower standards for graduation. One metric to consider is the four- or five-year graduation rate. For financial reasons, second-tier schools may initially admit more freshmen but ultimately wash more of them out. While this can turn out poorly for the student who takes out student loans only to wash out sophomore year, it can be a boon to strong students who, for one reason or another, didn’t have a standout high school experience.
USC (South Carolina) is #1 for international business, for example. As I recall we also had good engineering programs. I can't speak for the CS department, but I do know some very smart professors are there, since some of my friends did research there.
USC was the only college I applied to, and I had zero doubts that I'd ever get in (since I didn't go in for IB/business).
Now, networking is a totally different animal. Of course a lot of universities can't match the kind of networking that happens at Ivy leagues. For most people I don't think this is really an issue though as long as you go to a "good"ish university.
it's not about the curriculum, it's about who you meet there and what can you make of those connections. you can't avoid the elite to bunch up in few places, because they intimately know that the game is about whom you know and how you can leverage family ties well before the smart kid from middle class background learn that the world outside academia isn't a meritocracy.
even if universities were all equally performant in teaching, people who managed to connect with the elite frequenting key places would still get a jump start in the life outside.
Bell curve
You are aware that it is their small number that makes them desirable right? If you make them all the same level, they will be equally undesirable.