Agreed. I don't see why anyone from Maryland would choose UMD over GWU or BU over UMass. That's totally not worth it. I'd say one should go for either the state school of Ivy/sub-Ivy.
That isn't always the case. I hate hate HATE this argument because no one ever acknowledges gray areas. I grew up in a state with a relatively good state school (not UC-good, but Maryland-good). And I chose an expensive private school in another state (not at Harvard level, but roughly in the top 30), and yes they gave me some scholarships but I'm currently 20k in debt and I wouldn't have changed it for the world.
I was surrounded by brilliant, self-motivated people who weren't there just to get a piece of paper to put on the wall so they could become *insert boring 9-5 job here*. That is the majority of the world, and that's fine, but it isn't me. This way, I was around people LIKE me. I loved that.
I never struggled to get to know a professor or get a research job or find on-campus work. With <5000 undergrads, I could be an actual person, not just a number. Had I gone to my state school, would I have been able to do that? Maybe. But it would have been up to me to seek it out, up to me to ask for help if necessary, up to me to find opportunities and look for like-minded people. I'm un-shy enough to pull it off, but many aren't. Those people suffer in a place like that.
I left home, I met people from other countries and who believed things entirely different from what I believe, I had to learn how to do laundry and cook for myself and how to spend a holiday or two without my family around. And yeah, some days it was scary to be somewhere completely new, but it was an absolutely precious experience. When applying to med schools, I looked at the whole US because I KNEW that I could go anywhere and thrive. I know a couple of people for whom coming to my school was the first time they'd ever left the area they grew up in, and it was a hard adjustment. You don't always have the luxury of picking where you're gonna go for med school, and having to deal with separation anxiety is yet more to worry about as a first year.
Also, yes, there are plenty of people from lesser-known colleges at even the fanciest of med schools. But statistically speaking, the top schools will still put out more students in those great med schools than the lesser-ranked ones. Once you begin interviewing, you realize how much that's true.
So, there are pros and cons to both options, but please, PLEASE don't make it seem so black and white. I made the right choice for me and I don't regret it, debt and all. I would have HATED my state school, it's in an ugly town with people I have nothing in common with, the campus is hideous, and the classes are huge. Had I lived in CA, would I have picked Stanford over Berkeley if I had had to pay sticker price for Stanford? Probably not. But in my situation, my choice made sense.