Basically, talking about rankings is shorthand for saying that they have more resources, better connections, a larger and more diverse faculty, innovative program structure and classes, and a history of placing people well. Yes, we're all awesome and will exceed anywhere. However, we can't pretend all those things (again, for shorthand: rankings) don't matter.
Bfat, I say you go with Penn State. You're right, they've got shit going on. Plus, how awesome would that be to turn down Michigan?