Some schools don't count the first year or two and would take the average of your final 3 years or so.  Some may even accept you if you slightly below their requirements but if they see you've worked hard and made improvements in the final few semesters.  They might accept you or even give you a conditional offer like maintain a certain grade or else you'll be asked to withdraw.  Best is to go visit the school and meet with the directors or call them up and explain your situation.  You'd be surprised how accommodating and flexible many can be.

If you had medical issues put them forward in your application. What is always a good sign is 'upward progression' of a students' trajectory - so even more than GPA, highlights improvements in marks of design.  Would be very important to get rec letters from those tutors in final years.  Do go visit the schools personally - better than phone  - show you are motivated and passionate.  If your work experience has shown more that you have gotten over your initial academic challenges do also highlight it - 

my feeling is that there are plenty of MArch programs that would accept you with a low gpa but a nice portfolio. I would just be realistic and not apply to schools like harvard, etc. 

A portfolio is more important at a lot of places.

I would go see the dean or senior professor and have a talk with him. I would mention some problems briefly but emphasize you are doing well and are looking forward to school. Tell them you just were not that interested initially in school. Mention your plan B to get licensure through working.  I would not write down any kind of medical, especially psychological, issues on any kind of application. That is just giving ammunition for some ass in admissions to score points by rejecting you. You will be fine.