My point wasn't really the amount of smart people that exist at either schools. It is more so that existence of smart people does not equal a more challenging or more educational experience.

Although I agree with you that the further you get in a field, the more likely a prestigious school will be better. But I would credit that to having a more direct relationship with professors. When you are actually helping a professor with their research, the quality of the research matters more than when you are simply being lecture by that same professor.