Not saying there aren't smart, capable people at the less elite schools, but generally those who claim it doesn't matter where you go are those who really didn't have a choice.
I would disagree. Some of us had a choice, but we chose to only go in debt 50K, rather than 300K. As a white male who's parent's income was over 250K at the time, I had to choose how much debt I wanted for the rest of my life. I chose the less expensive university over the elite one. I was able to get more scholarships and financial aid at the less elite college, brining my total debt down to 30K. This was 1/10th the cost of the prestigious school that I had an option to attend. If you ask me, the person who choses the 30K university is the *smart* one.
The advantage of going to a more elite school is that your peers, on average, are going to be smarter and generally more accomplished. This ripples down in many ways, including a faster paced, more in depth curriculum, better resources, better professors, and, perhaps most importantly, connections & relationships for networking that can last a lifetime.
This is simply untrue. I have been in academia all my life and have worked with many people who went to these elite schools, and I would *not* say they are smarter. Did they have a higher GPA? Yes. Higher SAT? Yes. Are they smart? No.
The truth of the matter is, intelligence is not increased by association and intelligence is impossible to measure. I would argue that my peers at the less elite school were much smarter than my current colleagues from elite schools (these are people with PhDs from these elite schools).
In fact, these "elite" scholars typically over-think many simple problems. This truth certainly exists in the data mining community. Researchers in this community typically over-complicate their problems, over-looking simple solutions that outperform their methods. These are researchers are essentially wasting their time using really complex math, where a simple Euclidean distance measure or nearest neighbor algorithm makes their methods look silly.
Furthermore, I have noticed that people who went to "elite" schools tend to lack common sense and have a sense of self-entitlement. The last conference I was at, a guy from MIT (an American) came up to me (with a map of the hotel in his hand), and asked me where a certain room was. I grabbed the map out of his hand and showed him... I was baffled! How can you attend MIT and lack the ability to read a map?
The bottom line is "elite" schools are only worth it if they are free. Otherwise you are wasting your money (give me 300K and I'll turn it into a million before you graduate).