I went through recruitment at one of the most competitive schools last year and was cut by all of my legacies after Philanthropy round. I know that my mom was shocked - she didn't realize that because it was so competitive and there were so many legacies (seriously, I think there were two others in my Rho Chi group alone) that it was absolutely not a guaranteed bid. I know that she was upset because she told me she "Always thought I'd go Chi O" and knew that I really liked them during rush. She thought that because she did everything right - did the legacy introduction form, had her little and my cousin (an alumna of that particular chapter) write me recs - I had a really good shot.
I was prepared, though - I knew that unless I really impressed them, they would probably drop me just because of numbers. I'm an out-of-state student and they traditionally pledge a higher level of in-state girls, I didn't know anybody in the chapter...I just saw it coming. I would have absolutely loved to be a Chi O (and honestly still love the chapter), but for whatever reason, it just wasn't in the cards.
My two grandmothers' houses dropped me after Philanthropy too, but I didn't like their chapters nearly as much as my mom's - and they'd already told me that it wouldn't upset them if I pledged elsewhere. It was a little hard to find that they all dropped me, but it all worked out in the end.
I do think that having three legacies may have hurt me a little...of course I don't know anything about other chapters' membership selection, but I know that it had to have been a little discouraging. My chapter wouldn't necessarily drop someone in my position (obviously they didn't drop me), but I know that I was a real "get" - they thought that because I had three "ready made" connections already that I'd choose one of them. Luckily, they didn't give up.
But because cuts are so heavy, I can see that being an easy reason to cut someone.