I think the question he asked Taco is completely legit. Even if most schools don't ask applicants, you know it has to come into consideration. I mean, if you're from state XYZ, you have great stats, and you'll save $100,000 over the course of 4 years by attending your state school, then sending you an acceptance letter might be a waste of ink, envelope, and stamp. It seems like common sense.
Anyway, to Taco, that is a tough question, and I think you answered it supremely well.