Uc Berkeley does just fine with applicants, IMO. I know a lot of students who would be ecstatic to get into that school. I personally know a lot of parents that would give a lot to get their kids in there too.
I’m in a state tried to model it’s state university and college system after CA’s. It did not succeed in getting the top kid, kids from the top socioeconomic environments and families interested in its system—the SUNYs. Nsme recognition not great even within the state for any of its schools and hardly any OOS. Berkeley hits all of those notes.