I don’t think this is true. While UofT definitely has higher admission standards than the other schools in Ontario, I don’t think think that directly translates into UofT student = smarter and brighter than all other law students. Even to go to/get into UofT, requires a certain amount of privilege, that not all law students will possess. And there are a number of reasons to choose one school over another. Also, one may be successful at the undergrad level and not as successful at law school, that’s just the nature of the curve.
It's a process to transfer jurisdictions after being called so I agree that you should at least figure out what province you want to live in, and that's where you probably should do articling. That said, I have plenty of friends who articled here in Ontario and left the province when they were done (to go back to their home province or whatever). So it's not a hard and fast rule.
If you are truly torn (i.e., don't mind having to leave the province after you've articled), then take the job you think you'll like and is in an area of law that's connected with your interests. If you like criminal law, the good news is that it's federal so anywhere you go after you article will be able to make use of your experience. You may have to learn some local civ pro but that should not be difficult to figure out.