Hi Buck92,
Many Business Schools expect applicants to score a minimum of 4.0 (out of 6.0) on the AWA. While a 3.5 won't necessarily hurt your application, it might bring up some questions about how strong an applicant you might be (and how committed you are to the overall process). From what you described, you didn't try very hard on the AWA (from a certain point of view, you 'gave up' - and the GMAT gave you the Score that you earned). That type of AWA score could be due to a number of different factors: you might have gone 'off topic' or wrote material that was 'thin', unconvincing or otherwise ineffective.
With a strong overall application, some Schools might not care about your AWA. You're ultimately asking Admissions questions though, so you would likely find it beneficial to speak with an Admissions Expert about your overall profile and application plans. There's a Forum full of those Experts here:
https://gmatclub.com/forum/ask-admission ... tants-124/GMAT assassins aren't born, they're made,
Rich