Historically, engineering was viewed as a lesser pursuit (academically speaking) compared to the harder sciences or humanities. It was sort of viewed as the practical topic that lower and middle class students studied at university while the wealthy and well-connected could study more classical, high-minded things. During this time period, Ivy League schools (and other similar schools) largely ignored engineering as being beneath them and it wasn’t until (relatively) recently that any of the Ivies actually cared about engineering. Meanwhile, most of the land-grant universities were established around, among other things, engineering programs, and have been doing engineering for literally their entire existences. This is the historical reason why many land-grant institutions are “ahead of” most of the Ivies in engineering.
That being said, there is a kernel of truth to the idea that the fundamental ideas of engineering are pretty standard and that a student will get the same basic fundamentals at any reputable program (for example, any ABET program and the few non-ABET programs that aren’t trash). However, you can’t sit there and argue that a program is better because it has better students while also arguing that all programs are effectively the same because the basic fundamentals of engineering are fairly standardized. If nothing revolutionary is going on at the “top” schools, then how is the reverse true at Ivies? The fact here is that engineering is much more egalitarian than other fields.
So, let’s back to one of the original questions about what concretely causes most of the Ivies to be perceived as inferior in engineering to their land-grant brethren. The Ivies started late in the field, as I mentioned before, and haven’t devoted many resources until (in some cases) relatively recently. The programs were therefore small and underdeveloped for a long time while state schools built up a reputation in engineering. That means that now, it is actually harder for most Ivies to attract the top faculty in engineering (with some obvious exceptions), which has an affect on the programs. As an engineering professor, Princeton and Cornell are literally the only two Ivies I would even consider as a place to work without some pretty substantial changes. Otherwise, they simply couldn’t support my research program (or maybe just won’t).
Now, all that being said, that doesn’t mean a student would get a bad education in engineering at the Ivies. The curriculum is somewhat standard, after all, and a number of Ivies have been putting more resources into their engineering programs and trying to attract more top faculty, especially in newer fields like the biomedical sciences (which is getting a lot of investment at Harvard, for example).
One more note, since it was discussed earlier, is that department size can be correlated positively with program quality. A larger department means more professors, and more professors means more diverse interests. This means the number and variety of electives is going to tend to be larger at larger programs. Now, of course, I used the word correlation for a reason, because it’s an indirect relationship. You could certainly have 100 faculty at a department and they are all doing the same research or just not doing research, at which point it is unlikely to contribute to a breadth of research and elective opportunities. At the other end of the spectrum, you could cite some of the really “elite” schools that have excellent reputation despite small size. Still, my main point is that you shouldn’t discount a school simply because it is large. That can have some advantages.