I think there is a danger in assuming that the graduation rate applies to other people’s children, but not one’s own, as it suggests that low graduation rates are the fault of the students. Sometimes a low graduation rate also reflects how available courses are and how much attention is given to students’ needs. There are schools where students simply cannot register for the courses that are needed because they are full or scheduled so they can’t accommodate other needed classes, or where there is limited advising, which can lead to students making bad choices when they can’t get the classes they need.
My school is less competitive to attend and has a lower average ACT score, but as a school we are committed to making sure students stay on track to graduate. If a student absolutely needs a course that is full, then we open a new section or we have a really full class. We also have a large academic advising staff so if a student is struggling (for whatever reason) there is a support network to help. I agree that graduation rates may be less meaningful at top schools with lots of resources and extremely strong students, but for those that are mid-tier or lower, I would pay attention to graduation rates.