This was my post last fall:
I can only offer up a little info as my daughter is only an incoming freshman. What I found (at orientation) was some very smart kids that were offered admission to some of the better schools like NYU, Fordham, BU but were given a much more generous scholarship package at Pace so ended up there. These are kids with very high GPAs, lots of APs and very high standards that wanted to be in the city and couldn't afford or weren't willing to pay the pricetag on the other city private schools. Pace does require a lot more from them then the regular student. In turn, you get high priority for classes, a special advisor, some very challenging professors, special programs and other things that distinguishes you from the rest of the students. Like I said, I can't really say how this plays out because she is just starting.
A year and a half later, I would say that all the above has been true. My daughter has found some very sharp students there, her professors are challenging and her experience has been very positive. You will find that most of the honors students are in the same caliber as you - accepted at other high level schools, but got the best package at Pace. They also have some very impressive alumni.