Some of my favorite erroneous beliefs about PhD admissions among blithely ignorant family/friends/co-workers:
* That it's like getting into undergrad
* That it's like getting into a professional program (e.g., an MBA)
* That your being "smart" is enough
* That your having been successful with school-related things in the past is a reliable signal of how you'll fare
* That it's truly a crap shoot so even with objective flaws to your application, you really do have as good a chance as anyone to get into your reach/dream school
* That somehow the other gazillion applicants are rubbish so the fact that acceptance rates are <5% doesn't mean much for your prospects
* That the stress/waiting ends with getting admitted rather than when a funding package you can live on is offered
* That their admission to an academic masters or PhD program in the past represents current reality - if you're an older applicant, you'll have friends from undergrad, etc., who will use their own experience as a guide to your prospects, and you'll want to say "But it's so much more freaking competitive now!" etc.
All of these things combine to make people stupidly optimistic about your chances and can serve to both make you take your rejections as embarrassing and your admissions as less impressive/awesome.
But here, we know better. Good luck to everyone on this crazy, difficult, stressful adventure!