My school, like several others - is P/F with no ranking, no AOA determination, no real consequences for scoring poorly. I still aim to score in the mid 80's, but not fighting for 'Honors' in preclinic has afforded me time for research, leadership roles, and allowed me to live my life.
A lot of this ties back into what school you go to, how it is ranked, how they generally match, and how competitive you hope to be. But from my experience talking to friends at other schools and serving on educational panels where we discuss other school's grading systems
Graded = most stressed, still better than all undergrads, still can be collegial, but students feel a lot of pressure
P/F but used for AOA = less stressed out, but every single MS1 thinks they're getting AOA so can feel gunner for first months
True P/F = most collegial and laid back
YMMV, but all else being equal I'd take a P/F preclinical curriculum over graded as it gives you more time to build up other parts of your profile and develop your professional interests.