Some students will be at the top of their class (group A) regardless of where they are. They should choose the most challenging schools if financially affordable, or even borderline affordable (they will likely have the earning power after they graduate). They’d be bored at lesser schools. Other students who are in group A at lesser schools for non-academic reasons may still receive the best those schools can offer, but they aren’t going to be challenged by their true peers and may not reach their full potentials.
Group B and C are both good places to be. Group B students may have chosen the school for a number of reasons including financial. The plurality of students are in group C and schools are good match for them.
Group D students may do okay, especially if the distributions of student competency at their schools are relatively tight, but the schools aren’t ideal for them. Some students have to be in the bottom quartile, unfortunately.
If a student is in group E, her/his life might be miserable if s/he cares about academics.