The first time I applied to grad school, my advisor crossed half the schools off my list, telling me that a.) I'd have a harder time finding a job unless I went to a better known program and b.) it was better for me to look for flexibility rather than focus, given that grad school might very well alter my research interests.
I was skeptical at the time, being a callow undergrad, and listened rather begrudgingly, but it really is solid advice, well worth pondering.