My guess is that this is the parents’ way of trying to force the OP to aim high and do his best instead of settling. They may honestly believe that if a smart student studies hard enough and scores high enough they will be admitted to an Ivy League school. The OP’s parents may see a plea to consider slightly less selective schools as a desire to slack off or as a lack of confidence. What they don’t seem to realize is that it’s not all up to the OP. Ivy League admissions are notoriously difficult to achieve, particularly when the applicant is in an overrepresented demographic (in this case, smart, high achieving Asian students from well represented states), as the OP seems to be.
If I were you, @mintokki, I would put this all in a respectful letter. Pour your heart out. Tell them you know they love you and you don’t want to disappoint them.
Then hit them with the hard truth. Give them some statistics culled from here and other admissions sites, such as the “three times as many valedictorian in the US as spaces in Harvard’s freshman class” statistic and the number of kids with a 4.0 or a 1600/36 who are not admitted. Tell them you’ll work your hardest to be admitted to the schools they value but you want to make sure you have options come next fall. Offer to pay the admission fee to a couple of likely schools and assure them that putting in an application doesn’t mean you are making a commitment to attend.
Hopefully a letter would give them some time to process what you’re thinking and feeling without launching back into the cycle of frustration and fighting you’ve been experiencing. Good luck.