I agree with you. I didn't go to those schools. That doesn't mean the environments the original comment that started this chain mentioned don't exist. That was my only point. Whether they are desirable or not is another question.
But I don't think we should pretend it's one with an obvious answer for parents. Yes, you don't want to stress out your kids. But I'm not sure it's so easy to blame parents from those hypercompetitive neighborhoods. We are living in a world of self interest were increasingly everyone has a college degree, thereby devaluing the credential at a basic supply/demand level. The very best schools are in a class all their own, and (rightly or wrongly) have been largely immune to this downward pressure.
Talk about bubbles is also not really useful. Wealth is a bubble. Software engineering is a bubble. A neighborhood where everyone goes to a state school is a bubble. Poverty is a bubble. But at the macro level if people don't think the world is getting more cooperative and is just getting more competitive, doing whatever they can to keep or send their kids to the best bubble possible is at the very least defensible. I think there are also a lot of parents who don't seem to have a robust concept of the future. I assume anyone being born today is entering a far more competitive and frankly, brutal world by the time they are college age. The world is getting smaller. And not enough people seem willing to do the work required to make sure all kids do well. In such a world, pushing your kids in high school so they can get the best shot makes sense. This can be true even if it doesn't make other people morally wrong. In the same way wealth doesn't make you a better person. But let's not pretend that in a world where (in the United States at least) many people among us if they lose their job won't be able to afford healthcare, that wealth is entirely without virtue.
Suggesting that is indicative of the same sort of "they'll be fine" thinking that frankly, strikes me as the most "bubble" idea possible. From where I sit, it's simply the case that the world is not getting easier.
Surely these hyper competitive neighborhoods are full of already wealthy people? I hear about people "needing" to spend a ton of money on kids as part of this competitive scene and I just don't get it. If you're that worried about them, why not invest that money into a house (which costs the same as e.g. 4 years at Yale, but you could potentially rent it out until they're old enough, and finance it) for them so that they basically start life on barista-FIRE mode?