My opinion is that people are exaggerating a bit. I read all this stuff on the forums before I took my DAT and was kinda freaked out. When I took the real test...yes there was some "application" but nothing like the MCAT. You want hard applications...MCAT will give you a better idea.
Bottom line...application just means you have to think a little more. However, process of elimination comes very easy on the exam. Achiever Bio was a lot harder in my opinion. There was one question I was totally clueless about, but only one choice had anything to do with the scope of the question (in a broad sense). I went home and checked the answer...turns out my guess was right. Not based on knowledge, but just from eliminating all the wrong choices (which came easily). In fact, the two hardest questions that I had no clue about were either you know the answer or don't. Process of elimination didn't come so easy. Pure regurgitation.
Just my opinion, and only from one frame of reference. Just thought I'd share my experience.