I know UC-Davis provides as good or better an education than Stanford (not at all sarcastic and meant in an earnest way), but it seems willfully blind to not see that they serve different social and economic roles in the American class system.
Sure. Just like a BMW is a status symbol in a way that a Toyota Corolla is not. The irony in this case, which also applies to state vs ivy league schools, is that a Corolla is a more reliable car (cheaper to operate and cheaper to maintain too!) - so as a car it is 'better', though just not as 'cool'. Similarly, a state school will provide you a quality education at a fraction of the cost and afford you all or most of the same kinds of opportunities as a ivy league school.
So what does that mean for the 'American class system'? To me it means that we live in a a society where you can spend lots of money to acquire 'status'... or you can save that money and do your own thing.
After a car leaves the showroom, it's ultimately up to the owner to decide what to do with the car. A Corolla is great at getting groceries, but a BMW can not only take you to supermarkets but also win races on Sundays.
Oh BTW, BMW has just won the 24 Hours of the Nürbergring this past Sunday.