However, it ignores a few things. There is always an advantage to being ahead, even at state schools.
Come in with more AP credits or college credit plus? - Get priority scheduling over your peers
Get priority scheduling - More likely to be able to graduate in 4 years
Come in with more credits, take less gen ed requirements and get into a major earlier - Build relationships with faculty in your major sooner, more opportunities come your way, internships, etc.
It's compounding, but instead of for interest in your bank account, it's your life.
On the other hand, in my past life I was a lawyer. I worked my ass off in high school to get into a top journalism school, worked hard in college and studied my ass off for the LSAT to get into a top-20 law school, and that STILL wasn't enough for me to get anywhere close to a high powered legal job.
The worlds are very much different. I obviously prefer the more merit-based environment that's still found in tech, where "can you do the job" still trumps most things. But things are much much different in other environments.
Probably inevitable given devs are making "real money" (biglaw or higher) in Silicon Valley, and having real influence, but still, I agree something may have been lost.