Hey,
You should still apply there! Just because most of the people that attend the school are in-state, it doesn't mean they are against accepting out-of-state students. Most of the people that apply to MCO in the first place are probably in-state students anyway. I mean...who wants to move to a cold place in Michigan where there's really not much to do. Plus, if you apply online, there's no application fee (in contrast to all the other schools)!!!
If you'd like a small class size where all the students and professors know one another, MCO would be a good place to go. When I interviewed there, I found the interviewers to be the most friendly out of all the schools! I think it was my best interview. If you have any other questions concerning MCO, feel free to ask me. Although I'm not actually a student there, I can give you some ideas about the school since I've been there and am from Michigan.
Ning-Ju