I always tell dh that my Oxford 2:2 is better than his Salford 2:2
He tends to counter by asking who's now paid more
I'm not sure I would have done any better anywhere else though - my problem was simply that I was enjoying myself far too much! I think that not applying to Oxbridge when you'd actually quite fancy going to one of them because you think you've got a better chance of a first somewhere else would be a bit sad.
If my kids are interested, I would certainly encourage them to apply, and then make of it what they will (if!) when they get there.