...we had this conversation before and you seem to be talking more about hedge funds, private equity funds, and investment banks. Investment banks actually do recruit a lot of kids out of BYU undergrad and I've helped place a good number of our summer interns from my shop into top tier investment banks. VC/PE and Hedge Funds do not hire a lot of people out of undergrad anyway. BYU undergrad has a ton of Fortune 1000 companies that recruit there and it's the favorite spot for the Big Four accounting firms.
I don't think increasing or decreasing enrollment would change any of that. In fact, decreasing and being more selective would likely drive some of the Fortune 1000 away for lack of selection/low hit rate.
In terms of prestige, I got my MBA from BYU (I know you are looking down on me right now, but I had other higher ranked options and wanted to help build the BYU brand) and I worried that when they increased the size of the TNRB and then doubled the size of the MBA program that BYU would go down in the rankings. They have stayed at pretty much exactly the same place in the 11 years since I was there.
I don't think your point is entirely without merit, but I think you may be a little extreme in thinking any VC/PE or hedge fund would begin to recruit BYU due to more stringent standards or that big employers would go away due to higher enrollment.