Isn't most of the "prestige" of a nobel prize winner normally directed at the university at which they were conducting research (assuming it is an academic heavy field) at the time?
In my experience, every institution that has any connection whatsoever to the Nobel Laureate claims him or her. Undergrad, graduate school, research location, even high school (one local high school claims multiple Nobel Laureates -- unusual, but I don't know if it's unique).
I totally agree with the author in my experiences. To be fair those individuals were also egotistic elitists in other realms of their life. "If there's anything around here more important than my ego, I want it caught and shot now!"