I think some institutions take it too far, I also think the test itself is somewhat pointless. My sister had to deal with this recently, she also gets nervous when taking tests and ended up taking the MCAT 5 times because she didn't get the right score (over 30)... that was over $200 a pop!
While she was working as a scribe (and studying for yet another MCAT), she found out there were other options available to her that don't require such a high score and are just as good, or better. She is now in her first year, really enjoying the fruits of her labor.
I also had that issue in Colombia, everyone made a big deal about studying for the test. Out of a 405 max score, the nerds who spent most of their time studying were in the low 300s while some people who didn't do s*** (like me) were over 350. It got me into the program that I wanted, but it was in no way a reflection of me. I never earned any awards or strived to stand out, just coasted my way as I was bored as hell most of the time. Still know very little about history, geography, social studies, etc.