> If the elite colleges are not comprised of the rich and well connected it beats the entire point of an elite college.

Depends on how you define "elite", and I assume you mean some sort of hereditary or economic-class-based definition. But elite colleges could (and should) still work if they run on competency-based merit. I believe elite talent in as many fields of endeavour should absolutely be catered to.

> The entire notion of "elite" universities is discriminatory.

Well, when you put it that way, many things are discriminatory, for better or worse.