Listing other schools that you’ve applied to will probably have no bearing whatsoever on the success or failure of your application. Universities who request this are mainly interested in knowing how well their own marketing strategies are working.
Of course, the university expects you to be applying to other schools, and of course they expect you to be applying to the best schools possible. No university would turn down a good candidate because they applied to a better school. That would be crazy – like aiming for the mediocre candidates. The application process is not a one-shot deal; they will send out a round of offers, then another once they’ve received rejections. Students reject offers from universities all the time, so this is an expected part of the process. The same thing happens with scholarships, with two or three rounds of offers and rejections. The university will not balk at accepting any student out of fear of rejection.
There’s a further discussion of this phenomenon here.