OP, I think your morale would be boosted by reading the chapter on elite college applications in Malcolm Gladwell’s book David and Goliath: Underdogs, Misfits and the Art of Battling Giants.
(See also his talk on Youtube entitled Why you shouldn’t go to Harvard which covers some of the same material in less depth.)
Gladwell’s contention is that, in the long run, it’s better to be a big fish in a small pond than vice versa and he presents some interesting statistics to support his argument.
He looks at two groups of students who were hopeful of gaining STEM degrees. One group managed to get into Harvard, although they are not the high-flyers there, the other group go to a less prestigious university. The students in both groups performed at a roughly similar level during the high school years.
You might think that the Harvard students would be inspired to do well by observing their brilliant peers. But that isn’t what happened. Instead they became demoralised. Some dropped out. They decided they weren’t very good after all. But those at the less prestigious university compared themselves to their classmates and felt pretty content. They did well and completed their degrees.
You might then think that the students at elite universities who survived their courses would at least benefit later from having been exposed to a more challenging curriculum. But even that doesn’t seem to necessarily be the case. Gladwell illustrates this by looking at the early careers of economists who completed courses at different universities. Those who attended prestigious universities, and were the top performers there, were the most successful. No surprises so far. But after that came the top performers from less prestigious universities. They did better than those who went to prestigious universities but were slightly below the top performers.
The key to success, according to Gladwell, is to go to a university where you can be one of the top dogs. Don’t be seduced by the prestige factor and don’t underestimate the potency of the psychological boost of being better than those in your immediate vicinity, whatever your absolute level of ability.
I hope that has not been too long-winded for you!