First of all, whoever thinks that EM is less competitive than IM, go look at the residency numbers at NRMP (oor whatever the organization is called).
Secondly, anyone saying that you can somehow fail step1 and then still get into a residency spot is obviously going by some n=1 example. That would be plain simple lucky, and definitely not the norm. Latest NRMP numbers say that 35,000 applicants and 25,000 residency spots in total. 10K people do NOT match, and MOST of them are IMGs. If a person gets a sub 200 score and is an IMG, I honestly think that is game over for them. I mean they can spend a few thousand dollars and try their luck and see if they can be the exception to the rule, but it isnt going to be likely.
Here is the math for why it's ridiculously hard to get a spot if your numbers are not good.
Total IM spots = 6000 ish
50% of the spots are taken by IMGs so thats 3000 (with 7500 IMGs competing for those 3000 IMG spots).
There were a total of 12500 IMGs applying this cycle (12500 is the total no. while 7500 IMGs applied to IM). 50% of all IMGs did not get matched. 50% is a big number 🙂 I mean sure there are IMG friendly places out there, but you're competing with all the other IMGs for those spots. If your score is 20th percentile out of your peer IMG group, that's pretty much game over too. Sorry if this is harsh, but just google NRMP residency match data and look for yourself. 50% don't get matched, you just dont want to be applying as a "below average" student. And that's why if you have a below average step 1 score, you realy have to have a super high step 2 score.