Universities aren't as meritocratic as you might think. I really liked this book, http://www.amazon.com/Price-Admission-Americas-Colleges-Outs... I don't know if I agree with everything, but the realization that the majority of admissions at elite schools are to people who are in some way "hooked" is pretty shocking.

Also, the last Stanford graduating class was a fifth legacy students. http://www.stanforddaily.com/2009/12/02/legacies-a-fifth-of-...