ex-mike,
what do you consider a competitive residency? derm at mass general? Ortho at Hopkins?
If you are dead set on that type of residency(super select field at a super super select hospital), then it *might* be worth the extra money. I still think a person with 235+ step 1 scores, AOA, good letters, etc would be equally competitive for truly elite programs coming from either school. Notice that for dermatology in particular there seems to be only 0-3 matches on average at most all schools. It's not until you get to Yale, WashU, and Harvard that you consistently find 5-8+ derm matches.
Take a closer look at OSU's match lists over the last 5 years. I would say that a large % of the residencies are competitive. A similar % compared to Case. Fields like orthopedics, urology, and radiology OSU are well represented. I'd consider these matches in most university programs to be competitive.
Honestly, and I know this has been beaten to death on here, but I think people really overestimate the importance of medical school "reputation". My last interview was at a school which might not even rank in the top 100 were the rankings to extend that far, and all of the students with solid step 1 scores were interviewing and expecting to match at whatever programs they wanted to. Duke for IM, Mayo for radiology, one guy was expecting to match orthopedics at a solid university program somewhere. I didn't see any dermatology or radiation oncology matches and I don't know of any at this school in recent years, but how many students are really concerned about these two small fields?