Well, look at it this way, you made it in to grad school. That's a start. Sure, the whole change in grade importance sucks (I'm assuming, taking your word for it, etc, more on that in a second) but you're in.
Right now I'm just waiting to hear back from schools on whether or not I've even made the "short list," let alone made it in. After already having one school lose my transcripts, and potentially 4 not getting the GRE scores, I'm just a wee bit stressed out. I've also been pissed (at myself, at the graders, hell, at the world? I'm not entirely sure) after getting the scores back and getting a 550 in verbal and a 4.5 on the analytical writing. Its gotten to the point where I have friends ask me to proof-read e-mails to profs to revise them and make them more legible, more prof-friendly, etc, and then the verbal part had words that I've never even heard in common usage, and even formal usage for that matter! Granted, I didn't study for the test, but I wasn't expecting them to simply pull out a dictionary, pick the words that aren't used...ever, and then make a test section from it.
That, and my GPA isn't all that hot, in-major is a measly 3.2. "Competitive" being a 3.5 for admission, definitely has me anxious. Doesn't help that the classes I did poorly in (and even some I did "well" in) were the ones I either didn't give a crap about or I didn't have to try to pass, so I didn't try hard enough to do well.
I'm sure its getting harder (and if I'm lucky, well, not "lucky," but whatever, that it will for me) but it could be worse. Then again... it could always be worse.