Ah good question. Of course I woudln't know the answer, but I really wonder how they interpret such things.
School XYZ might not like being your safety, but the end, if you're a strong enough student such that XYZ is just a safety, how could they turn you down?
But I also wonder how the top schools regard it. For instance, if you only apply to one top school, they'll know you really want to go there, but if they see you're applying to all the top schools, they may think you just want to go to a top school, and they'll know they might not get to have you even if they accept you.
I mention this because I'm going to apply to mannnny places. Knowing some of the whimsical ways admissions people make decisions, I feel the need to play the number game. For example, I've written how I once got both an acceptance and a denial letter from the same REU program. The moral of that story is we really don't have much control over our academic future. All the more reason to apply to many places. But considering the 'where else are you applying' question, if applying to many places hurts our chances of getting in to each particular place, I don't know what to do.