The top four CS grad schools in the world are Berkeley, CMU, MIT, and Stanford, more or less in a four-way tie. http://grad-schools....cience-rankings
Rankings are a black art, but there are some where Berkeley comes out on top: http://www.washingto...ersity_rank.php
The Ivy League overall are not great engineering schools, though Cornell and Princeton have very good CS programs. While it's true that Princeton has more prestige than Berkeley as an undergrad school, it's the reverse for Computer Science, especially at the Ph.D. level. Princeton will not enhance your chance to get a better job, unless you are applying for a job that would bore anyone with a Ph.D. in computer science.
The primary US News rankings you're talking about apply to undergrad education. Berkeley cannot compete with the very top private schools in the undergrad rankings, because as a public school, we charge much less admission, so our undergrad-faculty ratio is large. But that has no effect on the graduate program, because graduate students and research are funded by research grants, and our department is as effective as any in competing for those.
For all programs at this level, finding a job is simply not an issue. But it's true that Berkeley CS has been uniquely successful in minting Ph.D.s who go on to be professors at the very top schools.
I agree with others in this thread who say that, from among the top schools you're admitted to, you should look for the best advisor match. Ideally, go to a place where there's three faculty members you'd love to work with. But stick with a program in the top ten or so; below that, the quality of your fellow students will drop off rapidly.
Jonathan Shewchuk
Associate Professor
Computer Science Division
UC Berkeley