There are more applicants than ever, competing for spots. And you are right, PhakeDoc, there has been a slow and steady increase in applicant quality by numeric markers, at least where I've been. So yeah, grades matter. But believe me, the total package matters a lot more. That means research, a coherent PS, good board scores, decent letters, etc. You aren't going to be turned down for interviews at top programs because you didn't honor or even high pass all your clerkships. Then again, you probably can't fail any either. Conversely, someone with all honors and a middling board score and no research is not going to get a free pass.
What I was trying to communicate with my prior post is that some medical schools, particularly some of the "top 10", tend to give out honors and high-passes like candy. It loses meaning. If you go somewhere like that, then yeah, you need to keep up with the Joneses. However, if you go somewhere with miserly MS3 honor rates, don't stress about it. PDs are smart, and they know the score on these issues. Worry about you, and round out the rest of your portfolio.