I don't think he means to focus so much on the historical anecdote about Ivy Leagues. His point is that the existing power structure (whether it's business, gov't, or education) is based on networking, not merit, and that by inviting some people who have merit to network, it only creates the illusion of meritocracy, because success is still founded on networking - which benefits the existing aristocracy, even if the intention was to move toward meritocracy.