This is really sad to read, as the OP won't be the only one affected. Yes, she probably should have put down her local, C of E school on the form - but maybe she actually put down 5 schools that she, historically had a better chance at? (Quite possibly not).
I have a friend who lives in Brighton, and was looking to move house. They found a lovely house, so looked into schools (2 preschool DDs).
If they were Catholic, they should get into the local Catholic school. Places not normally offered to non Catholics.
If CofE, they should get into the local CofE school. Places not normally offered to non CofEs.
They are neither Catholic or CofE. But the nearest non denominational school was only about 3/4 mile away, so still close. However, that was about 1/4 mile too far away to have a chance of getting a space.
Schools further away, would generally expect to be filled with children living more locally. Nearest school with a realistic chance of getting a place was miles away, and 'poor'.
They didn't buy the house.
But it just shows that there are some areas where there is no 'safe', local option to choose.
OP - There is lots of good advice on this thread. And many, many people make assumptions about how the admissions system works, and get it wrong. I agree that you should ask for your place back, as a last resort (it doesn't affect your application to any other schools, and you may need it, even if very short term). Then fully research all your other options, and get him on the waiting list of every school that you see as 'better' than the one offered.