Sorry, but I think this is rubbish. *Maybe* those names will matter the first time a hiring manager is hiring someone. After that, they'll quickly learn / understand the institution name on the sheepskin has diddly squat to do with the profitability, productivity, whatever of the division they've hired for. The characteristics of the individual whose name is on the sheepskin drive everything after the first interview.
To say nothing that your 2 arguments are conflicting. Are people jumping on the Princeton grad because in 1996 at the Hoosier Dome, Pete Carrill's team ended Jim Harrick's UCLA team's hopes of defending its NCAA title?
I can only speak from experience specific to the technical / engineering side of things, but I can promise you I only made what I call the "Case Mistake" one time. Sure, it might be more regional, but I'm certain that managers hiring engineers know the value of UA sheepskin and how much it can add to their organization. Their perception of UA isn't a static thing based on who was in the tournament when they were in college. It's a living evolving perception formed from the pure performance of the members of their organization.
N.B.: I write this as someone who never took a class at UA and holds degrees from 2 schools who *are* on all the lists. Those of you carrying a UA degree have no reason to be self conscious about it. I promise you those of us that work with you don't give a squat about it. It's another example of NEOH defeatism. Own it, be proud of it.
Go Zips!