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Debbie
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domotron
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Debbie
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While schools truly do look at the entire application and judge your candidacy based on everything you've submitted, the GMAT is important. It is true that other things can overcome a low GMAT, but the only thing I've really heard of overcoming a GMAT as low as 550 is extraordinary work experience. I'm talking about something like founding a startup that grossed $2million in its first year or something like that.

For your other question, from what I've heard admissions officer say, every application gets read, no matter what your numbers are. The deans of Booth and Kellogg have said in interviews with Poets and Quants that there are no immediate rejects, i.e., the Deans read every single application that comes in.
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triumph
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Hi Debbie,
B-schools usually say that no element is more important than the others, and they take a holistic approach. However, the GMAT is considered one of the most important elements in the application, along with the essays.
You can read this article to learn more about the elements and their weights in the application process: https://www.aringo.com/Requirements.htm
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applebees
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Most schools believe GMAT is a good indicator of how you will do during your first year at a MBA program. If your GMAT is low, you will need to otherwise prove to the admission committee that you can handle the rigor of a MBA program (i.e. with high GPA or professional work experience). 550 is a long shot to any ivy-league program but if you do get a 550, you can always re-take. If you browse the forums, many members show improvements on their second or third try after careful analysis of their weaknesses and put in more effort in preparation.