I am currently applying to combined MA/PhD programs in a humanities field, applying to all top programs. I am 3 years out of undergrad and have spent the last 3 years at a non-profit doing work that is immediately relevant to my proposed field of study.
Every time I tell people I'm applying, they say some kind of variation of: "Oh, you'll get in, look at what you've been doing for the last few years!"
Hi octagonal, you sound like me (4 yrs in a non-profit, then applied to very competitive programs) and your friends sound like mine. I had similar concerns, but all the professors and graduate students I made contact with told me that it's a matter of fit. If your real world experience is something you can include in your statement as extra ammunition, as additional evidence that you do/will fit in the particular program, I'd imagine that having such an experience under your belt can only help you.
Best of luck,
rysal