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I talked with someone who works at GMS, and they said all applicants will be notified by the end of March regarding their application status. Notification means either a finalist letter or the letter that MOBY received. If you're a finalist and end up not being selected, I believe those letters will recognize your finalist status explicitly.
As for the number of applicants (13,000), the increase for 2008 seems accurate considering the trend over the past several years (11,000 in 2006 and 12,000 in 2007). Although GMS does not officially release the number of finalists chosen for the second phase of GMS, I was told that the finalist selection is very competitive so, if you're a finalist, you should be proud.
From my experience, I know of Gates Scholars who were notified of their selection a few days after submitting their forms and documents. GMS will not notify you about whether you have submitted your documents, so you may want to call and confirm that they've received your materials. Notification of Gates Scholars tends to start before April 11 (usually around the end of March), so it would be wise to submit your documentation as soon as possible to remain competitive for the GMS. Some of you will probably be receiving notification letters in the next week or two.
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