Now that the R2 hype is over, here is my view of what is going on.
Second year in a row my school adds a ton of applicants to WL in R2. I think the strategy is to make R3 more competitive (WL guys are indirectly entered to R3 as the limited number of seats available after R2 goes either to R3 applicants or wait listers), and increase overall acceptance yield, while at the same time keeping the quality of the incoming class at predictable sky-high levels.
This is definitely great for Wharton's brand. We are becoming even more competitive, more selective, academically and professionally stronger, and more diverse. This increases the value of Wharton MBA even more.
The fact that last year's acceptance yield was phenomenally high, the school is probably testing if the approach will produce similar results this year.
Conclusion: it will be ever harder to get into Wharton, and WL is definitely not a bad place to be in. Keep it up, WL!