Anecdotally, I was placed on hold in September, than interviewed in January and was accepted a few weeks later. Being put on pre-interview hold is certainly not a "death sentence" as you say. That being said, I do not know of many from the cohort who had a similar admissions experience.
Just clear it from you mind; put it on the back burner. You'll be pleasantly surprised when you get an II.
Upstate, like many of the medical schools as i understand, looks at the whole picture. A monster MCAT score will get eyes on your application, but they are really looking for well-rounded, down to earth people who will do well in the Upstate community. This also means that those of you with MCAT scores not in the 99th percentile will certainly be considered and many will be accepted.