I'm pretty sure he's being facetious, but judging an engineering school by their participation in one contest is absurd.
As InfectedMushroon suggested, Berkeley CS is Top-5 nationally (of course these types of ratings are subjective). If you go by academic programs, Berkeley easily has as many Top-10 departments as any university in many such ratings. Where UCB loses in the ratings department is in funding, class sizes, that sort of thing. There's a lot of bureaucracy to deal with, but that's symptomatic of any large public school.
Show me any other UC (or public university) that comes close academically.
The reason some hiring managers might prefer a Berkeley CS grad to a Stanford one is they know the hell subjected to a Berkeley CS student. This goes for a lot of programs at Berkeley. If you're not willing to work your ass off and compete against intelligent students more driven than you, then you're going to have a tough time in majors such as CS, other engineering, MCB, and business. CS and Haas are almost impossible to get into these days.
It's well-known that from an academic difficulty standpoint, Berkeley is easily in the 90th percentile (if not much higher). Back when I was in the college selection process, the only school that I consistently heard worse horror stories of was CalTech. It's also well-known that Stanford and most Ivy League universities are relative cake-walks. I don't know what the current policy is now, but not too long ago, you could drop a class at Stanford without any record on your transcript on the day of the final exam. In Berkeley engineering, you get 8 weeks at best (and it takes almost that long to get into the class :disgust: ).
I'll put it this way, if you got a 3.6 GPA in Berkeley CS, you'd be very highly sought-after by Silicon Valley companies and top-tier grad schools. It proves a *lot* more than a 3.6 GPA at Stanford, for sure.
Honestly though, if you want a better college experience and/or your work ethic/study habits aren't all there, then one of the other UCs might be a wiser choice.