Most people here making suggestions are assuming nothing is going to be dramatically improved next year for your application, you said the same thing yourself. So if what they assume about you aligns with your self assessment, you should listen, and go with DO.
However, you might have a strong attachment to the idea, a rational one or not, of getting an allopathic education. And you might have the academic potential to work on improving the grades and the willingness, the skill to do more meaningful activities. Then by all means wait for not 1 but 2 cycles to reapply--You shouldn't expect to rush a EC that would show commitment and results from now till next June. What is 2 years of living it to the full with so much hope and dreams, when you are 65 and are already financially stable? If you are afraid of a couple more years of uncertainty, trouble and hard work, well then, you pick the wrong career path because that's what you'd have to deal with regardless if you choose MD or DO. Many people ended up having to do extra year(s) to enhance their residency application anyway.
I would also consider if your current decision might make the future you feeling underachieved and regretful despite practically the decision did not produce a worse result. I would not underestimate the important of fulfilling your own dream/desire/fantasy. It's a lot like marriage. Opinions from people with experience should be taken seriously. Practicality should be treated with utmost care. DO is a perfectly fine title to have and it probably makes you just as a fine doctor as you would be if you have an MD. And yet you are the person who's going to walk down the isle and sleep with the guy/girl everyday for the rest of your life.
Personally I had no regret trying again 3 years later. Against many advices of taking the short cuts, I saw where I could be and made it there through working hard and through being patient. I am having a great cycle. Holding one acceptance from a dream school and waiting to hear back from most of the other top 15 schools.
It all depends on if you know why you might have failed, on if you can do something about it, and on if you can do the thing you'll have to do. As much as I love SDN for general information, SDN is not a good resource to find solutions to personal question, because no one has enough information. Talk to your premed advisor if he/she is any good. You might also consider talking to someone consulting medical school applications professionally and pay them to really look at what you had done and to help you figure out your chances and yourself. A lot of time it's about knowing who to ask for help and about willing to pay for the help you are going to receive.
