It all goes back to "known product." Whether its the military or a college program or academy, the product or the syllabus is formal and known.
On the other hand Bill Bob's Flying School might actually turn out a better pilot, but there is no brand recognition.

Now if you are a pilot recruiter and went through an XYZ program which you obviously thought was good, who would you be partial towards?

Recruiters prefer stable, formal, known programs.