If you want to be a CEO, it's a lot better to network with the kids of all the CEO's than the kids of the dentists and middle managers, if you can arrange it.
Totally and this is what I imagined elite schools and colleges were providing. Kinda like signalling. But if you don't have the means to hobnob then might as well get educated affordably?
Hobnobbing with the children of rich families is easier on a college campus compared to moving to Manhattan and trying to climb the social ladder from scratch. The earlier you can get into these circles the better. That's why private schools like Trinity or Andover are so coveted. Even certain daycares are becoming "elite."
Their point is that not everyone is looking to "hobnob", period. Some (most) people want a decent education and a decent job.
Of course, but that has nothing to do with the demand of elite schools. There's plenty of cheaper decent education options for better outcomes and decent jobs that have proliferated recently (online schooling, bootcamps, etc). But in regards to "elite" institutions, those with more money and a "stronger need" (ie more money) have and continue to drive the demand there.