Bottom line is that the "lesser" uni is the only one which will have you. No reason to be big-headed there.
If you're confident you can get an offer for the uni/course you want, then you should drop out and re-apply. However, do bear in mind that there may be reasons why your preferred unis won't take you, other than just missing a transfer deadline. You need to be absolutely sure that you meet the entry requirements for your chosen course before you drop out. It might be worth contacting the ones that wouldn't take you and asking if they'd consider you if you applied from scratch.
Also, if you drop out of uni now, remember that you will have used up one year of your Student Finance entitlement even though you've only done a fraction of the year. You'll have enough SF to complete a new degree, but you'll have no wiggle room to retake a year if you need to.