I’m a DO orthopedic surgeon, and FWIW OP, I have never been asked what a DO is. I have now been on clinical setting for nearly 8 years. I find it amusing that some premeds here think patients/hospitals care. May be for an academic job at ivory tower. But in the community, no one cares. You’ll have no shortage of patients or lack of respect from your MD colleagues. Only thing that’ll matter is your ability to be a good, competent, compassionate physician. That’s all. If you’re good, you’re good.
With that said, yes, it is harder to get into competitive specialties as a DO, although by and large, most MDs also go into primary care/moderately competitive specialties. However, it’s probably better to keep your options open at this stage. You need to figure out if your school will rescind your guaranteed acceptance if you applied out. If they won’t, I would absolutely apply to MD schools.
However, if they’ll rescind your acceptance, you need to be careful. You have pretty good stats but it’s not slam dunk status by any means for MD schools. Also, the reapplication to DO schools may not be easy as you’ll inevitably be asked why you gave up your seat previously. But it’s not unheard of. I had two people in my class who were previously MD students and quit medical school altogether and then reapplied a few years later. I’m sure they got shunned by MD schools and likely had good stats so my DO school took them. N=2 here, but there are quite a few DO schools and your stats are pretty good, so someone will likely take you. But I do agree, it is a risk and you need to understand the ramifications.