Yes, in DS’ class, there was much grumbling because Penn accepted 4 kids ED, and the word around school was that 4 was the “quota”. So what a surprise it was when several more were accepted RD. A few years later, the same happened except that MIT was the school in question. Colleges want to build great classes, so students are more important than the high schools they are coming from.
Sure, colleges don’t want to fill the freshman class with kids from only 4 high schools, but generally, the concern about competition from one’s own high school is misplaced.