Sure, it's the consummate "safety school". The reason I went there for undergrad was b/c I was offered (almost) a full ride. That being said, when the number of applicants is that high, the academic standards are almost sure to go up. That's how NYU got as popular as they are. While they don't have the most difficult standards (Stern school not withstanding), it's certainly higher than every other NYC institution with the exception of Columbia. Reason being is because of their location. They had a ton of applicants and their standards shot up. See Boston College and Boston University for two more examples.
Increased applications is definitely a positive for the University. I'm happy to see it.