I think this is a fair criticism. It seems very plausible that Davidson's reputation has fallen among students and more importantly parents in the last twenty years. As the parent of a 9th grader, I would much prefer her attend our state flagship (UIUC) than somewhere like Davidson. My parents on the other hand were much more impressed with those types of smaller private schools and encouraged me to attend one. Anecdotal, but I think this attitude is fairly representative of the mindset of older millennial parents I talk to.