As a KY resident, I got into UofL with a 3.7 overall gpa and 3.5 science gpa. Before I took the DAT, I consulted with an admission committe member, and he told me to shoot for 18AA on the dat just to be on the safe side. On my DAT, I ended up getting 18/19/16, which was good enough, but I think a lot of the out of state people who got in for the class of '09 had some killer DAT scores. I even know a lot of in-state people this year (including the president of the predental society at UofL undergrad) who got wait-listed (still haven't gotten in) and their stats were right around average...and they're KY residents. So, if anything, this just goes to show how much more competative this app cycle was, and I'm willing to bet the next one will be even more so. Your stats are definetly NOT shabby, but they likely won't stand out in a crowd...maybe if you retake your DAT just to bump each score up by a couple of points, since you have plenty of time to study, I think you'd be in excellent shape!
Also, get your application in as early as possible...UofL starts interviewing super early in the cycle...I had my interview in August!
As far as where most KY residents apply, most people apply to both schools...they are both very strong programs. Anyone who goes to UofL undergrad and gets into ULSD, likely will stay here in Louisville, rather than moving to Lexington to go to UK. UK, however, is even harder to get into, b/c their class size is much smaller...I think right around 50 people per class, compared to 80 people per class at Louisville.
Hope, that helps....feel free to PM me if you have any more questions about the ULSD...and good luck!