That definitely changes how your application is looked upon. A 4.0 SMP wouldn't have just shown you can handle med school; it would show you can do really well in it. But anyway, the use of a strong grad program performance is a topic of debate and look through my recent history you can see the thread I had with a
@gonnif about it a couple days ago but by and large if you were to do a 1 sentence generalizaton about it doesn't have a big impacts and doesnt help a lot on proving you can handle med school rigor. Some schools it will help, I know VCU explicitly states they recommend it for low gpa, but more times than not the impact is not significant to help in overcoming a mediocre academic undergrad performance
Now a 3.4 gpa with a strong upward trend can still get you into medical school, but the MCAT is everything here. Before I said 85th-95th percentile should be your target. that's not the case now; you really should gun for a 34+ equivalent.
40 schools is too much in your case. Your goal is to get into A med school not gun for a higher tier one with a 3.4 even if you get a 35-38 equivalent on the new MCAT. You can realistically cut down your list to about 20-25 MDs and about a dozen DOs(and even less than that). If you want help with a list there are many here who can help with that and I can try ax well. But first things first you really need a strong MCAT and then you can start talking about reaching as high as possible like
@gonnif talks about it. As a general note I'll leave with though you shouldn't significantly alter how you view your gpa when talking about MSAR data. It's worth applying to schools you are above or right at the 10th percentile gpa wise for but i don't think I would be adding .2-.4 to your gpa if it wasn't an SMP and just a traditional masters