How important are SAT's; What is a good SAT score?

I recently got my PSAT results back and got a 210, equivalent to a 2100. I also saw that I was in the 98th percentile of all students who took the test. Then I began to research colleges and found that many of the top-notch colleges still rejected many people with these high end scores. If I am really in the 98th precentile of students who took the PSAT why does it seem to me that my options are still quite limited as far as what college I want to attend? Do the SAT's not matter as much or is 98th percentile just not that good anymore? Thanks.