I am not saying which university is better and that is exaclty the point. Once a university is reputable enough, do you think an employer generally gives a damn how much more prestigious one institution is over the other? After all, I am not talking about comparing an ex-poly to St. Anrews/Durham etc. but a reputable and internationally respected university. And don't take my comments personally - I am not talking about you specifically, no need to be so defensive.
Another point I was trying to make that this ever so precious "prestige" which TSR members rave about, becomes useless if it can't even help you find a job (if that is your goal).
The fact of the matter is there are two universities, which truly have that "wow factor" and are a league in their own - Oxford and Cambridge. The others are more or less comparable - with them falling in the higher or upper tiers. If you think an employer will react like this:
"Wow let's get this fine chap from the far more prestigious St. Andrews/Durham. Obviously he is a lot smarter than that Manchester tosser."
Then you must be really naive.
Durham and St. Andrews will never be big international players until they increase their funding - they can't compete with the sheer raw financial power of other institutions. Whether people like it or not, financial income is the foundation for the development of a university. Prestige does not buy jack ****, money does.
"But a lot of the US colleges/universities are small but really prestigious."
They are financed in a completely different way. Take a look at Dartmouth and St. Andrews. In terms of students, they are similar in size, but their financial statements tell a whole different story.
http://www.dartmouth.edu/~control/docs/financialrept/2013-dcfinancialstmt.pdf https://www.st-andrews.ac.uk/media/finance/documents/Reports%20&%20Financial%20Statements%20for%20the%20year%2031%20July%202013.pdf"Prestige" can only carry you so much. St. Andrews is an excellent university, but these meager ~180 million annual income are not doing it any favor.
I rest my case.