The interviewer would like to understand the types of schools you are interested in and how you would rate their school. They pride themselves on their pioneering approach, their track record, the resources they provide their students, and the one-on-one attention they provide to each of their students. 'You will see when you leave that you are so ahead of the game in terms of clinical experience.'
If they are not your top choice, there's no need to indicate that. Use this opportunity to show how thoroughly you've researched this opportunity. Tell them what aspects of their university, programs, and approach enticed you most. By highlighting what you believe they do better than anyone else and informing them why you are interested in pursuing your educational journey with them, you will offer them a platform to share your enthusiasm and reveal you take this opportunity seriously and appreciate what they do. If you want to inform them of some of the other schools you are applying to, don't tell them they rank higher than NYUD. Instead, tell them what aspects of those other schools attracted you. That will allow them to suggest how they compete. Show that you value them and why. Your answer will indicate to them whether you share their perspective.