Calling her "lazy" and "mean," Gallagher's fellow contestants voted instead for popular New York firefighter Tom Westman to be named the ultimate "Survivor."
Westman was to receive the $1 million prize this morning. As runner-up, Gallagher will receive $100,000.
Gallagher, 28, who was in New York for publicity appearances, could not be reached for comment.
But her father, Barry Gallagher, and the rest of her family were with her in New York. They attended the "Survivor" reunion show held at the Ed Sullivan Theater and an after-show party.
"It was fun," Gallagher said. "Outside the theater, there was a large crowd of people waiting for us when we entered on the red carpet. We weren't celebrities, but we were to other people."
Barry Gallagher, who was speaking on his cell phone from their hotel room, said the family was "very satisfied and proud" of Katie.
"I know it was a lot more than what you see on TV," he said. "I talked to the other 'Survivors' and, in fact, the other 'Survivors' were very proud of Kate and remarked how they all enjoyed the experience."
Katie Gallagher will leave New York on Thursday and return to Merced next weekend. She will be returning to a large group of fans.
Nearly 100 people turned out at The Branding Iron restaurant in Merced on Sunday night to watch her compete on the reality show's two-hour final episode.
"We just put out every chair we had," said Greg Parle, the restaurant's owner. "It could have been a nightmare, but it turned out pretty good."
One of the many "Survivor" fans there to root on Gallagher was her longtime friend, Denise Rossi.
"Obviously, I wanted her to win," said Rossi, who was Gallagher's roommate. "But, I'm so glad she got in the top two. That was her goal to begin with."
Rossi's sister, Lori, was also at the event.
"She won on sheer personality, wit and charm," Lori Rossi said. "I'm just proud of how she negotiated everything. The whole game is outwitting, outlasting and outplaying and she did it."
But in the end, it was Gallagher's strategy of allying herself with the show's stronger members that turned off the other contestants.
"You were worthless around camp, insignificant in challenges ... pathetic," said Gregg Carey. Another contestant, Coby Archa, accused her of "riding the coattails of the people who played well."
Gallagher defended her actions.
"The whole goal of this game is self-preservation and that's what I've done," she said. "I came in with a plan and I executed that plan."
As for Gallagher's future, everyone had their thoughts.
"I think she's going to be kept busy with appearances and shows," said Barry Gallagher. "She's got some plans already made."
"She's going to play it by ear," said her boyfriend, Justin Parle. "She's hoping it will evolve into something else."
"I don't expect it to go back to normal," Lori Rossi said. "I think the world has just seen the first of Katie Gallagher."
Reporter Amelia Neufeld can be reached at 385-2455 or aneufeld@mercedsun-star.com.
