I can honestly say from first hand experience that you should both take that as a win and a reason to be hopeful for the future! I remember the drop in my stomach when i heard back from UofT last march. It was really hard to keep it together for the remainder of the semester as i was in the last semester of my BSW at the time. With UofT being the only school i applied for, it was hard not to feel a lil lost in the moment.
I went to my backup plan which was to get some more experience in the field and so worked from graduation until now as i felt that was the biggest weakness in my profile. I applied to UofT this year as well as York as i didnt feel comfy putting all my eggs in one basket. To my surprise, i was accepted into both, with UofT being into the health & mental health stream. I even learned this afternoon that i was placed into SickKids for my practicum!! It really is incredible what a difference a year can make, so your viewpoint couldnt be more spot on! Like you said, the strides youve made in the last 5 years cannot be overstated or minimized, so just imagine what another year means for your growth