USYD is an excellent learning institution, but it, like any other institution has its flaws. What it has that other universities don't have is a long and distinguished tradition. But tradition can only go so far - the university has a long way to go to catch up to UTS in many areas of study, and UNSW in others.
UTS has a great advantage over USYD in that pretty much the entire building is wireless ready. UNSW also have an excellent wireless network, and only in the last couple months is USYD rolling out an (unwieldy) wireless network for students to access. This unwillingness to adapt to new learning methods is a disadvantage in an ever-changing university system.
UTS also has an industry placement focus (as does UWS), which many industries value over a USYD degree, thereby making UTS and UWS degrees more valuable than a USYD degree in certain areas of study.
Even my campus, the Sydney Conservatorium of Music has a number of outdated teaching ideas, and while it may well be the most beautiful music school in the world, it has a lot to live up to in terms of music tuition. It runs one of the best Composition units in the country, but Music Technology, and in fact anything contemporary music related (except Composition) is lacking in comparison to the contemporary performance school at UWS.
These comparisons can be made about many of the subjects taught at USYD. Some of the people on this particular board believe that old and distinguished buildings = good university. Sure USYD may be the most prestigious, but the Best university? That's debatable, and the fact is that there probably isn't even a right answer.