Does every school have to be Tier 1, though?
We might have different definitions of what it means to be "Tier 1," so our mileages may vary, but when I think of top-tier schools in large states like Texas, I think of UT-Austin and A&M-College Station (or, in California, the UC system). Those schools have basically every major you can think of, and are major research universities. As a result, their admissions standards are very stringent.
Not every college has to be a Tier 1 Research University, or even Tier 1 in terms of US News's rankings. Especially in terms of public education in a state that's trying to keep its students in-state after graduation, a mix is best--some schools should focus specifically on the education of undergraduates with maybe a few Masters programs thrown in. Some schools should focus on commuters and non-traditional students. In fact, that very emphasis on undergraduate education and/or non-traditional students can preclude a university from ranking "high" on a national list.
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