In the :"how to get to the top law schools" guide by richard montauk, some of the admission deans that he sites in that book state that, schools do weigh strength of an institution and its programs, they also take into account grade inflation and such.
I've always heard that many of dook's programs are quite inflated, actually. Also, the perception that schools are more rigorous at private schools than large state schools seems pretty ignorant, elitist, and ridiculously pretentious.