This article brings up some really good points. Ultimately schools are obsessed with rankings because alum and prospective students are also obsessed with rankings. The rankings do a really good job of enthralling the consumer and making it competitive to get into college.

I graduated in 2009. In that same year we got a new president. He pledged to move the school up in the rankings from 22 in a welcome speech. The crowd gave a standing ovation.