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By the time it comes to college application, poor kids are so far behind that they cannot even think to compete for places in an elite school, including relatively cheap public schools like UCB, UCLA, or UMichigan.
Regarding legacies, well, they benefit schools financially, and the people who donate because they have three generations going to the same school have the financial clout to keep it in place. I don't think that it will disappear any time soon, so fighting against it is a waste of time and money.
I think private institutions should be able to use legacy however the heck they want, but when taxpayer funds are involved, I don't how that's even legal.