I would bet it is more for statistical research gathering than character & fitness.
Kelly, a school is going to know you are its reach based on your numbers. You can express in your PS that it is your number one choice. My point in listing comparable schools in that survey asking "which other schools are you applying to" is leveling the playing field and letting them know that you are applying to their competitors. I know we're supposed to take everything the "experts" like Ivey, Deloggio and Montauk say with a grain of salt, but Ivey has addressed this in her book and I believe the others have, too.
I really don't think you're going to be denied bar admission b/c you applied to schools outside of those indicated on one law school app where they ask where else you plan to apply.