Moral of the story: Never make decisions about where to attend law school purely based on money without investigating the situation thoroughly first, because they may just be playing a numbers game on you that will result in you paying only one year less worth of tuition to attend your super safety school that you would be paying at any of those tier 1 schools that accepted you.
Based on this, I'm guessing that there are at least a few others who lost their scholarships. I don't think they're redistributing the money either by giving it out to the top performers who came in without scholarship, because you have to be at the VERY top of the class for that and I'm guessing that a decent number of those people came in with a scholarship anyway. You get where I'm going with this.
It all seems to depend on the school. This is one area where I really like my Law School. From what I can tell, they do a really good job at making the sections as even as possible (based on LSAT and GPA). The part time day students seem to be split up evenly among the sections. Also, the level of teaching appears pretty consistent across the sections. If one section has a weak teacher in one subject versus the other sections (sans evening) it is made up by having a stronger professor in another subject. It is not perfect, but to me it seems like it is as close as the school could get