do you mean to suggest that applying for DV excludes me from the possibility of proving my Non-Intent on immigration? Point is whether I get DV Visa or not, going to US for education is a priority for me, so in your opinion I shouldn't have processed DS230, knowing that my high CN could never be current !
No. I'm not suggesting the DV visa application excludes you from the
possibility of proving non-immigrant intent. It's a lot more to do with the CO that is likely to review your F-1 visa application. Having a DV application in the system could be viewed as a 'red flag' that could make a CO harshly interpret INA 214(B) in your case.
According to the Immigration and Natural Acts section 214b:
Every alien shall be presumed to be an immigrant until he establishes to the satisfaction of the consular officer, at the time of application for admission, that he is entitled to a nonimmigrant status.... A lot more onus will be placed on you to prove your intent, I think.
Problem is I have high CN and most likely will have to apply for Student Visa much before my CN becomes current (if it does) ?
Point is whether I get DV Visa or not, going to US for education is a priority for me
Being this highly agitated, I probably would have have suggested applying for the F-1 visa first, before initiating the DV Visa processing in view of the fear being entertained regarding the high CN.
so in your opinion I shouldn't have processed DS230, knowing that my high CN could never be current !
However, personally, I'm a die-hard optimist. And if I was in your shoes, I most likely would have gone ahead and initiated the DV processing (like you've done) and entertain a strong believe that my CN will be current and I will ace the interview

.... that's just me, a die-hard optimist!
You can check out these sites for more information regarding F-1 visa and immigrant intent:
INA Section 214(B) and Immigrant Intent:
http://immigrationroad.com/visa/214b-immigrant-intent-visa-denial.php
Students and Immigrant Intent:
http://travel.state.gov/visa/laws/telegrams/telegrams_2734.html
You can also post a topic here regarding your particular case of DV Visa vis a vis F-1 Visa:
http://forums.immigration.com/forumdisplay.php?189-F-Visa-Issues-at-the-Consulates