I never found that to be the case, actually...
Really? You know, it is possible that many USMA graduates stay in the uniform and never apply for the civilian ivy schools. But for those who do, they are grabbed almost right away. Here is an example of what I found out on Harvard:
There are many West Point grads who go to the top B-schools.
Quote: "Consulting the database of Harvard Business School, I get the total number of MBA alumni who went to the following undergrad programs. What is even more impressive is that the academies can have such a large number of HBS alumni despite not having lots of students. For example, Army and Navy are almost as well represented as Berkeley and Michigan despite being clearly dwarfed in terms of total undergrad population.
Harvard University (3257)
Yale University (1485)
Princeton University (1301)
Stanford University (1200)
Mass. Inst. of Tech. (995)
Penn., University of (884)
Dartmouth College (771)
Cornell University (743)
Brown University (732)
Calif, U of,Berkeley (546)
Mich, U of,Ann Arbor (466)
U.S. Naval Academy (439)
U.S. Military Academy (438)
Duke University (429)
Williams College (423)
Although WP ranked 13th place, please remember many of other schools graduate way more students (except Williams) than USMA. For example, Cornell, UMich and Berkley has each 5x the graduates or more of that of USMA. So their acceptance rate to Harvard is effective 1/4 to 1/5 of USMA. This is not even counting the fact that fewer USMA students even apply to HBS because a good % will just stay with the Army. If we can normalize the above list with the number of applicants (or undergraduates), USMA will jump the rank. That, my friends, is the "true" ranking of West Point in the eyes of HBS admissions. Other Ivies are similar. USNA also does well here.
So ranked #4 is about right, so was #1 in 2009