<p>The US offers a liberal arts education, this can be very useful if the student does not know precisely what it is that they want to study. This is particularly true if your major is not something offered in High School (say Mechanical Engineering, or Archaeology).</p>
<p>If a student is accepted to read Archaeology at Cambridge, and decides after one year that Archaeology is not for them, then that year is essentially wasted and they can reapply at Cambridge or somewhere else to read something else the next year.</p>
<p>The MIT education in any field is not better than the best in Europe, in many cases it is more limited. As a Physics major at Oxbridge, almost all of your courses will be in Physics. This means that you will almost certainly read more physics in your three years on campus than an MIT physics major does in their four years. You will get a more specialised, more focused, and often deeper education at a UK university at the deliberate cost of breadth. As you say, people go to a UK undergraduate university to specialise.</p>
<p>Many UK students who know for certain what they want to specialise in are better off at Oxbridge. Those who don't, or are not completely sure, are usually better off at a US university.</p>
<p>As to the fees. That is another issue.
Tuition at most UK universities is 3000 pounds sterling next year for an EU student, roughly 11000 pounds for an overseas student depending on major. Living expenses (room/board/books) vary depending on location. University College London for example recommends budgeting 9800 pounds per year. Plus there are other fees for example, you pay to attend your graduation ceremony, to recieve certain degrees and so on, which are included in the MIT cost. So the cost of the "free" education in the UK is around $25000 US dollars per year for a UK student, and USD $40000 for an overseas student.</p>
<p>This is substantially cheaper than the USD $46350 per year charged by MIT. However, over 90% of MIT undergraduates recieve financial aid (source: SFS website), whereas that number is much, much lower in the UK. Whereas Oxford Opportunity Bursaries and the like are available to low income applicants, the overwhelming majority of UK students do not receive financial assistance.</p>
<p>Now I am not suggesting for a moment that most of the brightest UK students do not go to UK universities. However, I am saying that it is not a foregone conclusion, and every year I interview some very bright UK students who have chosen to apply to MIT.</p>