That is a poor example. RPI is an excellent institution. After you get past the top-50 or so schools, reputation matters far less. If you are truly attending a 'low-tier' school then MIT might matter, but for most jobs the vast majority of institutions are only small differences.
For my first job post PhD I was told I was selected over folks from Stanford and Princeton: my doctorate was 'only' from UT Austin.
I've also sat on admissions and fellowship committees for doctoral programs and students. GPA matters more, at least among the 'good' schools. And even then, I've never seen a 2.0 student beat a decent GPA (3.5+).
Now after about 3.3-onward, I agree that GPA does not matter a bit. In fact, I'm adverse to hiring or selecting students with a 4.0. This typically indicates a poor optimization heuristic (GPA over learning/challenges/interests).