It is great for schools to be need blind for admissions. They should not be considering finances when determining which students get accepted. It is the student and his/her family that determines whether the costs are doable. It can happen that someone- a rich relative perhaps- is willing to help the student attend college X. They may not make their offer until they know the student is accepted and what the difference in ability to pay is. The schools should not be in the game of only admitting students based on affordability. There is a reason students get accepted after others decline the offer for whatever reasons.
“Need aware” would discriminate against students who find resources and can attend. Presumably the students give financial info to be considered but must also realize the school may run out of funds before their turn at any.
Students should only apply to schools if the possibility (not probability) of affording the school is there. It is an ego stroke to know one was academically acceptable to a dream school.
I do not consider it a denial from the school at all. It just means the student is not so perfect that the school feels it owes that student a paid for education.