OP here. Thank you for all the responses! You do not know how much I appreciate your thoughts and insights yet I'm not sure we're precisely addressing the issue. That being said, there are several things I would like to clarify:
1. DC's GPA trended up from a 3.7 freshman year (first year at the school) to a 3.89 which, by all measures, seems to be very competitive at Big 3 schools. So, it is not a case of DC starting at a 2.5GPA, for example. Counselor said that DC ranges between top 5% and top 10%, depending on the semester.
2. I agree that the SAT is low. With tutoring its now hovering around 2250-2300 so hopefully that will improve.
3. I did not want to mention this, because I know there will be backlash, but my spouse and I are from Central America so, yes, my DC is "Latino" yet does not phenotypically appear to be so.
4. We are on financial aid at DC's school yet have clearly stated that finances are not an issue when it comes to college. This is an investment which will be on DC's CV for life-my spouse and I have been saving accordingly. Nonetheless, we still fall within the financial aid parameters for most well-endowed schools.
Again, I understand how competitive college admissions are and am by no means devaluing the rigor of other academic institutions. What concerns me is that my DC is in the same GPA/SAT/extracurricular range as other students who are being ushered to competitive schools whereas he specifically seems not to be. In fact, during our conversation, he abruptly said "just don't apply there" in reference to Princeton and Stanford. Only later, with pressure, did he qualify his statement using vague terms such as "profile" and "fit" without referring to concrete numbers. According to Naviance, DC is within GPA/SAT range for HYPSM schools.
What I really would like to know is why the school is so intent on DC applying to this binding scholarship for an out-of-state state school, early decision. Am I wrong or overly suspicious? If the top 5-10% of students at Big-3 schools do not get into Ivies, then who does?