Last year I only applied to two schools, only one of which was a good match. Not too great, but I didn't have time with finishing a Master's and all the other work I had to do with it. Got rejected to both. Spent the summer fighting discouragement and trying to get the strength to send more applications for jobs out. But I got a position teaching for a year at a private college in my field--a really good job where I can earn some money and get some good training and experience--the first resume I sent out. And I applied again.
If I don't get in, I'll probably consider doing the same. If I don't get in within another year or two, I'll think about going back to school and getting a degree in an area where a Ph.D. isn't needed and jobs are more common. I'm not letting it get to me. First of all, I'm too busy with my work to do so. I'm still embarrassed at my lack of faith and immaturity reacting to the rejections when the opportunity I got was better (for me, and overall) and I know miracles can happen. And, I know it is also most likely that a total list of rejections will happen because the economy is terrible, everyone is either going back to school or staying in school, and there is just not a lot of money.