I was planning on transferring the minute I could to a school I was wait listed to. I thought that going to well known LAC that had rigorous curriculum would help me get to this school (NYU). But, I realized I should have just gone to a Community College, received a 4.0 and all would have been well.
ALL IN ALL, if you do have a #1 school, you should do whatever it takes to continue having a strong academic record as opposed to maybe, say a 3.3 at a more rigorous school.