You should perhaps go for a balance between the two. As far as possible, you should try to get into a good college. A college, whether it is good or bad does matter. Not only in terms of reputation, but simply because you are likely to learn better in a good college. But all this should not be at the cost of the course you will prefer to choose. Go for the best bargain, a fairly good college and the subjects of your choice. Just for the sake of your course don't go to a college whose reputation is nowhere counted. There are many such cheap private colleges, these days, where it's very easy to get the course of your choice. Beware of such colleges, avoid them. These colleges may lack the infrastructure, they may not be having good faculty either.
So as far as possible, go for a good college, if need be, sacrifice a bit on your choice of subjects. That way, you won't lose much and that will perhaps be your best bet. So go for a balance between the two. Yes, it's true if you are bright and capable, you will be able to get into a good college and the course of your choice. As far as employers are concerned, some of the employers do give importance to the college you have passed out from. But not everyone.
Patience and perseverance pays