To be fair, this is a much higher rate than some of the big NSF and NIH grants out there right now (R01's are at something like 8 or 9%!). I know we're not all scientists who have 30 years of experience, so it's not exactly a fair comparison, but I think that's just the state of science/arts and federal funding right now.
Besides, you have to remember that not all of your competition is created equal. I'm sure that a good portion are "throw away" applications that didn't really make much effort and maybe started the application process a week before it was due, for example. Echoing what many before have said, we are all talented and ambitious folks on this forum, and we all definitely put in some serious effort. You'll drive yourself crazy if you think of the overall rate, because it's not random probability. I'd put money down that the majority of folks on this thread are already in the top 25-30% of those 10,000 applicants. All you can do is have faith in your own ability!