I'm a first year student at NYU and heard the same rumors which made me slightly nervous about my decision to attend (and i did have other options).
I have to say I am INCREDIBLY happy with my decision. I had a blast in college and was worried about starting such a demanding program but really my first term went really well. There may be one or two less students than we started out with at the beginning of the year but as far as i know the ones who left did so becasue they wanted to, not because they were asked. They faculty really do want you to succeed and in my opinion if you make it through an undergrad degree and the appropriate pre reqs you won't be failing anything.
All the upperclassmen are very helpful and i have found NYUCD to be a fairly supportive environment. There are lots of opportunities here if you take the initiative. We have a large and diverse patient base and lots of specialty departments which invite you to come by if you are interested in that field. I was also able to get pretty good marks and still have a life. Living in NYC is amazing so if money isn't a deciding factor I would go for it. Experience of a lifetime.