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Very rare has it been when I get a job I am actually qualified for (at least on paper).
Applying never hurts. Not hiring you isn't an act of personal malice and you shouldn't view the failure as a personal embarrassment. Odds are you'll never hear anything back, but that would be true if you didn't apply at all. If nothing else it is practice writing a cover letter and keeps you thinking about your resume.
If you do get an interview and are truly underqualified then even if it doesn't go well it is practice (and practice of a type that may be better than a smooth interview). I once did an interview for a job where there was a complete disconnect between me and whoever wrote the job description as to what English words mean. The first part of the interview consisted of me saying over and over again "I don't know," "I don't know anything about that stuff," "couldn't tell you" and such. But I handled it well and when we moved passed the point where it was obvious it wasn't a fit we talked a bit more and some other opportunities were mentioned that were better fits. But even if that happens, no harm, no foul.
So, the bad outcomes are still useful at the cost of postage (and these days probably not even that).
Best case, you sell them on your skills, your ability to quickly gain new skills, and get a job. The only really bad part of coming in technically under qualified is that it is always used as an excuse to bring you in on the low end of the pay range. And once with a company (especially a larger one) it is difficult to quickly adjust that upwards if you prove yourself since managers are frequently capped on raises.
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