I think it's perfectly reasonable to treat them worse, they're a more malign influence than most trillion dollar corporations on society. Segregating by intellect and cognitive ability has been a disaster for society - I think it's a big reason for why social trust has been declining in America for the past 60+ years as elite institutions become more focused on who "deserves" admission because of "merit" rather than who their parents are (which means now it's just fuzzy proxy for parental preparedness).
It's beyond time we transfer wealth from Harvard and MIT to UMass Boston and similar schools that benefit large numbers of Massachusetts residents rather than the few.
Is there anything more to your point than "I dont like them so we should steal your money and give it to someone we like more"? I am inclined to agree, these universities are trash, but you not liking them doesnt justify stealing from them.
It's beyond time we transfer wealth from Harvard and MIT to UMass Boston and similar schools that benefit large numbers of Massachusetts residents rather than the few.