It's an honest question. I mean, med school is really expensive as it is without 200K+ in undergrad tuition being added on to it. Given that the advantage of a top school in medschool admissions is fairly marginal (compared to Business/Law/Grad), I don't see why a rational actor would make such a choice. Also, it would probably be harder to score solid grades against a crowd of super-competitive, driven, individuals.
Are these people who make such choices so rich and privileged that money ain't a thang to them?
In a few cases, yes, these are students whose parents are wealthy and will pay for pricey undergrads and pricey med schools. However, this isn't the norm, and most people don't have parents who have the spending power to pay $500k for undergrad and med school for ONE child. Those parents are likely in the 7 figure income or the very high 6 figure income, or they only have one child.
I have a cousin who is attending a top private undergrad. His parents are paying all costs. If he goes to med school, they will pay all of his costs. His parents have a net worth of a few million and their income is about $500k. They are not the norm, not even close.
As for the others who choose pricey schools for undergrad: There still is this myth out there that they will get better schooled for the MCAT and lots more help getting "placed" into med school (their words). They also think that SOMs will give them a pass for a lesser GPA because they went to "a better school."
They look at the middle quartiles of their big state school and wrongly think, "those dumb kids will be in my premed classes, therefore the classes won't be very good."
I wonder how many of them get into med school, (after draining parents' money or taking out loans for undergrad), take out big loans for med school, eventually begin their practices and realize that some of their peers don't have that size of debt because they went to a cheaper undergrad, and saved their college accts or borrowing power for med school only. That must be a bite in the butt to think you racked up $500k in debt unnecessarily while your colleague has half the debt because he made more economical choices - and is earning the same amount as you are.
On the other hand, at most of the top schools, if you qualified for lots of aid, then it may have been a cheaper choice than a lower ranking school.