Kind of correct, if the CO of the NRD decides to hold a field board he can issue a field reject letter, if that is not done you can continue to apply as long as you wait the required 6 months between applications if there are no significant changes in your application.The recruiter/NRD could set whatever restrictions they find appropriate. Have heard more than one recruiter tell an applicant their application will not be resubmitted unless their personal situation changes substantially (eg, completed advanced degree, new job experience).
Wouldn't get upset if the Navy doesn't find you a viable candidate. Would recommend making yourself a more desirable applicant. They Navy is in a great position to be selective.
I was suprised to find out how competitive it is. My general line of thinking before I started in my application was that the Navy would be happy to accept qualified and competent people for a commission. But the benefits and rewards of being an officer combined with budget cuts has created a massive surplus of personel and very limited billets. They can litterally take only the best of the best.