Two pieces of wisdom that I have gotten in the past several years of college apps with multiple kids are 1. Build a college list from the bottom up, and 2. Learn to love your likely.
As others have said, their lists may not spell disaster, but may well create a tense and angst-ridden senior year waiting for an acceptance.
The key is not only having schools on the list where your kids will most likely get admitted, but will also be happy to attend…bonus points if the schools issue an answer early so that your kids can relax.
Sometimes it takes an attitude change to get to that point. Motivated and successful kids are programmed to believe that they need to and are entitled to attend the most selective school where they get admitted. Taking some time, researching, and especially touring likely/safety schools helps families to realize that almost all schools can offer incredible opportunities, resources, and overal experiences.
Your kids may both get into an ED school and you will be in the lucky position of thinking we are all naysayers. But I could also envision a situation with these lists where they are deferred/rejected from their ED school, deferred in EA from somewhere like Michigan that postpones most OOS decisions, especially coming from an over represented state like California, and then they are left in limbo and anxious until the end of senior year.
For practical reasons and for your own peace of mind, I would look to add some true likely schools to both lists…and get them excited about those opportunities.