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I'm fairly certain the OP will not be stepping straight into a CEO job.
Your first point doesn't make any sense. "There are an unlimited number of H grads." Yes, there are a lot of them, and they like to stay in the New England area, generally speaking. "9 times out of ten none will be competing for the same job." If there are a lots of grads, as you stated, and they are in the same geographical area, why exactly wouldn't they be competing for the same jobs?
Anyway, it has little to do with Harvard vs. IU directly. The point is that it is a region with a lot of business school grads, and they are coming from business schools that are at least as well-respected as IU's. That's a lot of competition to assume that the IU name and connections will get the OP anywhere. It's just a guess, but a good guess that most IU business school grads stay in the midwest (not all, but most).
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