A. This is only true for the engineering majors. Where else in GA can you go as an engineering major? SPSU...one of tech's transfer schools..Georgia State(to transfer)
B. +1 to that. I know plenty of kids(including myself) 2010 on SAT, 7 AP classes, 3.5+ gpa that got rejected or waitlisted. I also know some of the smartest kids from GA go to UGA(being from the smartest school in the state woot)
UGA is only a plan B for engineering students with a social life. Those that are awkward tech rejects end up going to SPSU or GA state and transferring hopefully.
UGA only has a 8% transfer out rate(I bet 90% of these are to tech)
Tech is a different animal. Tech competes with MIT and cal tech. UGA competes with the other flagships and big name schools such as penn state, (yuck) florida, alabama, mississipi, south carolina, auburn, ohio state, Minnesota, etc.
Give UGA a few years. It'll get to that level. I got into UCSD, Ohio State, NYU, and Washington but I'm going to GA!