Is it time for me to face reality and accept the fact that I will never go to a top university in my lifetime?

First, you need to relax. It is totally ok if your school only offered 3 AP classes! Colleges/Universities will not hold it against you. What matters is that you took advantage of what they had to offer. A 1980 is pretty good for first time, so you are capable of getting over 2000+. A 2.8 gpa is not that bad in college. What you can do now is to bust your butt off for the next few years and bring that gpa as much as you can. My older sister goes to a local public university and got a 2.8 gpa her first year, but now she's been getting 4.0s; she made it to the dean's list at her university BECAUSE she switched into a major that she LOVED doing. It's super important that you do what you want to do because if you do something you hate, then you won't do well in it. Her overall gpa is 3.4, while her major gpa is 3.9. She applied to certain schools like Northeastern, Pitt, Penn State, UW, Berkeley, Boston University, and Boston College for Master's program, which she hasn't heard back from yet. What you can do now is to just work hard. Build good relationships with your teachers, and get a good score on the GRE. Just do your best now in college, it doesn't matter where you do your undergrad, just get into a good grad school. Good Luck.