There seems to be a huge mix here at Wharton. You do indeed get some who came here after getting dinged by HBS. But not everyone gets their first choice, no?
At the same time, there are also a lot of people who chose to come here over other schools, or (like me) didn't even bother applying to other schools. Fit really is extremely important- I think that alumni and the network is most useful when you feel like you belong to the community, and I felt that very strongly for Wharton and Lauder.