Interesting topic. I have a close friend who graduated last year and is currently in his first year at the PhD program at Cornell. He got accepted (with full funding) despite a 3.1 GPA and a GRE score of only 1140. As timuralp stated, a PhD program is about research, and since he had solid research experience that seemed to compensate for his low GPA and GRE score. I think students tend to place too much emphasis on those indicators, and fail to understand the importance of a good SAP, strong letters and research experience.
Also, he had a choice between Cornell, University of Washington, University of Pittsburgh, and the University of Texas - Austin (all with funding).