But I agree with you; I've worked in a lot of places, and in all of those except France, once you have real work experience, your university degree doesn't mean a whole lot for normal engineering jobs.
In the end, I do think that degrees matter less than what people think and that it's completely possible to have a good career without the school name or university name having much of an influence (obviously it's anecdotical and probably depends on the field). I do strongly believe that being saddled with lifelong student loans is probably more detrimental than the positive aspects of a degree in most cases (maybe with the exception of lawyers but the only those who can cope with the lifestyle)
As an example, in a previous job, I noted that the new French software engineer had come from INRIA and was a graduate of a Grand ecole. The fact that this resource went on to demonstrate well above average work and domain abilities was not a surprise to me.
So note that some of us do pay attention even if it is not mentioned during recruitment.
But if you're not going for that threshold, you'll likely not run into issues. And if you're in niche-careers, it's probably true as well.
And, well, the fact that it is isn't ranked well on any of those international rankings has not been a problem for my carrier at all. I have rarely been asked where I went to university and I don't think that it's affected my carrier at all.
However the fact that I have no student debt because tuition was pretty much free has been a boon for my professional life.