Educational materials are freely available now (from elite schools even), so I see university primarily as a means to acquire credentials and to meet a high-quality spouse. Your kids don't need credentials, so I suppose the question is whether those schools would help them to be surrounded by the right kinds of people, and whether they wouldn't otherwise already be.

If you feel that it's a rat race, and if the people who go there are the types that participate in it (and later make their kids participate in it) despite knowing it's pointless, are they a good fit for your kids? If not there, where would they find a better fit? They're already economically secure, so your primary concern should be maximizing the chance that they end up with a happy family life and end up as well-rounded people.

Education is still important for them to grow up as whole people of course (c.f. classical takes on "liberal arts"). But if it's merely in service to developing an impressive resume, who are they trying to impress?

On a related note, these sorts of articles are always bizarre to me as someone not in that bubble. I was a B student growing up (mostly out of apathy), went to a state school, and have worked "normal" engineering jobs. I plan to have an order of magnitude less money than you, but that's still on the line of what I'd consider to be "generational wealth". Going to an elite school was never necessary except to make sure your kids are around kids who go to elite schools. Only someone in the elite school bubble would think it's necessary or that it's normal to make your kids' lives revolve around it.

Similarly, when articles like this conflate "eminence" ("becoming a full professor at a major research university, a CEO of a Fortune 500 company, a leader in biomedicine, a prestigious judge, an award-winning writer, and the like") with flourishing in life, it's clear to me that they're just living in a different world in terms of value systems. I was always in the 99th percentile on standardized tests, and being the CEO of a Fortune 500 company sounds like a total nightmare to me. I don't even want to move from an IC to management role or to reach the top parts of the IC track for that matter. I plan to retire from such work and spend more time with my family.