[linseed_213]

I think it really depends on school Z. If it's a flagship, top in-state school (Michigan, Berkeley, UCLA, Virginia come to mind but aren't the only ones), you may have a better social experience and still have the ability to meet top talent. If it's one level below that, I'd consider MIT.

E.g. In CA I'd put Berkeley/UCLA at close to MIT for undergrad and a more fun place, but I'd choose MIT over UCSB or UCSD for academics and future career options. Not that there aren't smart, driven students at those schools, resumes speak for you to some extent and will open more doors.

You're not the only one making this decision, other smart kids are making the same choice. I chose a large state school over smaller, "higher ranked" private schools and regret nothing. I had a much more "fun" experience than any of my friends who went to those other schools, and I find most of their friends pretty unlikable (douchey rich kids).