Michigan degrees are in fact not degrees that "will take you anywhere". They are quite valuable in Michigan, of course, and in Chicago, but aren't considered top 10 magical outside of there. Southern Call degrees are much the same. They mean a lot in Southern Cal, and their alumni network is worth a lot there, even more so because it is a private school.
If you are a 3.9 gpa, high test score kid, there can be a lot of value going to a more elite school, although Stanford would be waaay more valuable than Michigan (though not as valuable still as Harvard). It would be worth it for any kid that will be able to do a 3.5 or higher GPA at college to consider something like that. But if they end up at a low 3.0 or below, all they are going to be left with is the alumni network anyway, and that is only useful if he want to stay in the great lakes region.