I know of two HS seniors who applied all over - both attended in-state. One wants to go on to medical school, and realized what her parents were gently trying to tell her - that the other schools would burn up her funds. The other applied to 11 schools for medical engineering; went to the state program, and switched majors after one term (and she was a very strong student). IDK if her family limited funds or she decided that the state school was a good fit for her.
I do think there are two ways to look at things - don’t want to overlook something that may work out wonderfully; don’t want to apply to schools that have such a high probability of not working while overlooking/failing to apply to other schools - then ending up with little ‘choice’ at the end. Want to have feasible things to decide between if not a clear one or two fiscally good programs standing out.
DDs had the in-state ‘standing out’. Saved us a lot of time.