Alas, I think it is better this way. I doubt I would have been able to afford Grinnell, even if I got admitted, seeing as my EFC is 3x higher then my family can afford, so it would have been an even bigger disappointment to have to turn Grinnell down after being admitted.
After all, Beloit is a wonderful college and I have been thinking a lot during this whole process about which would be a better fit. Being at least in the top quarter or so students at Beloit will be a major bonus. Also, Grinnell massive grade deflation will probably hurt me a lot in the end as I want to go to top Grad schools or maybe law school. On top of that, Beloit seems a lot happier and friendlier place then when I visited Grinnell. Both will challenge me, help me obtain good writing, thinking and social skills, so why not go with the better fit. Which I think is Beloit.
I think my initial disappointment was not so much having to go to Beloit, but being told that I could not go somewhere. I started looking at ways in which I felt Beloit was inferior to Grinnell and based a lot of it on superficial things like ranking, endowment, selectivity. But I have realized none of that crap really matters. What matters is what ACTUALLY goes on at the school, not what others think or what percentage of people with 2000+ SAT scores they have.
So, once again thank you everyone, good luck at where ever you end up. I know I have found the right place to spend the next four years of my life.
edit: Oh and I was excited to actually take that grinnell waitlist stuff out of my location, it doesn't belong their anymore