I totally agree with you on this. For instance I'm super happy that I'm going to Elliott, because it's the better fit for me. I didn't even apply to Georgetown, SAIS, SIPA, Tufts—well, I might not have been admitted to these schools, who knows—simply because I would not have been able to work during the day. And with little work experience, a degree from these schools doesn't hold much value anyway.
Regarding Elliott, their MA in International Affairs is a good program that allows me to improve my work experience during my studies. Here in Europe you cannot get a decent job—not even a job in your field—with just a BA, so I was not able to work several years before going to a "better-ranked school". So what you say is true: "The most important thing, more than reputation, is figuring out where you want to go and if that program will help you go there." I know that I'll be able do great things with my degree from Elliott.