Earlier quoted context omitted.
By this reasoning, you should put a list of the universities you were admitted to on your resume, not the university that you actually attended. Under these terms, what's the difference between going to Harvard for a couple of semesters and dropping out, and getting admitted to Harvard but deciding to attend Dartmouth instead?
Getting admitted isn't as valuable a signal as getting a degree. Both are a signal or proxy for intelligence (IQ), but getting a degree is also a signal of persistence and conformity to get through the grind of college courses. Bryan Caplan has written much about 'signaling theory' and education in posts like this one: http://econlog.econlib.org/archives/2006/02/mixed_signals.ht...
It depends. In the limited world of software startup hiring, a compsci student that got admitted to MIT/Stanford but drops out after his freshman year conveys a more valuable signal than graduating from the University of Alabama (a much lower ranked school) after 4 years of study.
If it's an older institution doing the hiring such as IBM or Goldman Sachs, they'll want that official piece of paper showing you graduated regardless of the school's low ranking.