I appreciate your comments. I don't see anything where we really disagree.
I think "test optional" is completely asinine. Maybe we disagree about that.
My perception is that there is intense competition for the truly elite schools. I would put Northwestern in the lower tier of those schools.
Beyond that, it largely depends what program you are in, though UCLA and Michigan are still clearly "better" than Iowa or Clemson or whatever. You will find better students and better professors at the better schools, in general.
Its the value proposition that people are pushing back against. From that perspective, the elite schools are charging reasonable tuition, while most of the "good" schools are overpriced. "Why would I go to Boston College for $80k a year when I can go to Illinois for $35k (or whatever those numbers are).
Students who excel at "less than elite" universities will find fewer doors open to them. Its just something to overcome - plenty of people do it - and there is a growing awareness that those students tend to do very well in the real world.