It's not just me who places value on prestige and title, it's society in general. If you go up to two men (one with a PhD, and one without) and ask them a question, and each give you a separate answer who are you going to believe? Most people would believe the one with the PhD, simply because he has a PhD. Now compare somebody with a PhD from Harvard and someone with a PhD from some small university in the middle of Idaho. For sake of argument people here may say that they'd go with who has a better tract record in their field, or say the guy at the small university got a better education due to class size and not being a hoity toity Harvard man...but the general American public will go with the Ivy-educated gentlemen over the latter.
Again, tangential (not that I care. I just want to make sure we're clear
).
I think that you're underplaying the significance of a PhD ("simply because he has a PhD"). Having a PhD degree shows that you understand the material encompassed in the subject. Up until then, you could usually get by with memorizing procedures and facts that lead you to the right answer without understanding the underlying concepts.
While assuming an answer from a PhD is correct over an answer from a person with a lesser degree is definitely fallacious, one can normally assume that, at least at one time, the person with the PhD had an intimate understanding of the concepts involved with the subject the degree is in.
You can continue to spout anecdotal conclusions about how important the prestige of a school is, but, personally, I'm not so sure. While I do agree that it has noticeable impact when applying to jobs, graduate schools, etc, I think that there are more important issues to concern oneself with (such as succeeding/excelling in your current studies, participating in research opportunities, etc).