Everyone misunderstands what LC focuses on. It focuses on - did you grind like everyone else that did to get into this company/region/tech? It allows for people who didn't go to the most specific schools (e.g. Cal, Stanford, etc.) to still get into silicon valley companies if they show they are willing to fit the mold. It's about showing you are a conformist and are willing to work very hard to do something that you won't realistically use much in your day to day job.

It's about signaling. That's all it is. At least it's not finance where it's all dictated by if you were born into the right family that got you into the elite boarding schools for high school, etc. I would've never made it into finance unless I did a math phd and became a quant.