Well, you won't have a job to interfere with your work in med school, so that's one plus. But the rest of those factors you mentioned (curves, multiple choice tests) are a part of medical training life. I'm getting ready to take my specialty boards this fall, and guess what? It's a multiple choice test. So are all three parts of the USMLE, all of the NBME exams, the shelf exams, and probably every other exam you will take once you start med school. If you're not good at multiple choice tests, this is a weakness you absolutely need to improve on.
As pietachok said, it's school-dependent. Each med school makes its own exams, its own test grading policies, and its own course grade system. Some schools are P/F for the first year, or for the first two years, and others give grades during all four years. But regardless of where you go, you will almost certainly have grades for at least part of your time in med school; there are almost no schools that are P/F for the last two years. In addition, nearly every medical school ranks its classes, and the top 10% of each class are eligible for the medical honor society AOA. Getting AOA is definitely a boon to your app. Some med schools include grades from the first two years when deciding on AOA, while others do not. I don't know what MSU does; you'd have to find out from them.
Also, as pietachok said, there is no do-over on the USMLE. If you barely pass with a 185 (or whatever passing is these days), then you will be applying for residency with a barely passing score. If you fail, you can retake, but then you apply with a fail plus retake on your record, which is also bad. So if you're going to succeed in your medical training (residency as well as med school), you need to get good at multiple choice tests. Because you keep taking them throughout your training, and they keep getting harder as you go along. I've been told the post-fellowship boards for my future subspecialty make the general specialty boards look like a walk in the park....