S1 majored in a science at a strong LAC and just completed his MEng at a top engineering school with a great GPA. His LAC prepared him well and gave him a solid foundation to continue on to graduate school in engineering. He did a double major in his undergraduate so a 3-2 was not possible for him and it worked out better going on for engineering at the graduate level. He commented that he preferred the smaller class sizes at the LAC for his undergraduate degree.
So if you are thinking of a Masters degree someday, the LAC option can work out just fine.