My application was a long shot to begin with, I applied in the EC category and had completed my undergrad at McGill with a 3.34cGPA, no LSAT, Quebec resident. I'll be going back to school to complete a second undergrad and will be applying again and to other civil law schools with a hopefully much better cGPA.
George, you're overstating things and prospective students need to take many factors into account. You have no way of knowing the 'all things being equal' claim. You are a student, not an employer. I didn't say that school attended doesn't affect your career prospects. I said that career prospects will depend largely on 1L grades, and not (largely) on school attended.
I am in Ottawa and I head the student recruitment at my firm. I know and have interviewed hundreds of U of O students through the years. Many from the GTA, (and I doubt that it's half the class, given my experience, but am happy to agree to that if you are able to provide cited figures) will remain in Ottawa, just as I did after my clerkship. It's a large legal market and a great city.