You can specify many conditions to order by in your analytic function
SELECT *
  FROM (SELECT id,
               col1,
               col2,
               col3,
               dense_rank() over (partition by id
                                      order by (case when col1 = 'xyz' 
                                                     then 1 
                                                     else 0 
                                                 end) desc,
                                               col2 asc,
                                               col3 asc) rnk
          FROM your_table)
 WHERE rnk = 1
I'm assuming that you want dense_rank given that you used the dense_rank tag.  You don't talk about how you want to handle ties or whether ties are even possible, so it's not clear from the question itself whether you want to use the rank, dense_rank, or row_number analytic functions.  If you are only ever fetching the highest ranking row per id, rank and dense_rank will behave identically and will return multiple rows if there are ties for first place.  row_number will always return a single row by arbitrarily breaking the tie.  If you want to fetch rows other than the first row per id, then you'll need to think about ties and you'll get different behavior from rank and dense_rank.  If two rows are tied for first, dense_rank will assign the third row a rnk of 2 while rank will assign it a rnk of 3.
This seems to work for the sample data you posted
SQL> ed
Wrote file afiedt.buf
  1  with x as (
  2  select 1 id, 'abc' col1, to_date('01/01/2012', 'MM/DD/YYYY') col2, null col3 from dual union all
  3  select 1 id, 'abc' col1, to_date('01/01/2012', 'MM/DD/YYYY') col2, 'A' col3 from dual union all
  4  select 2 id, 'abc' col1, to_date('01/01/2012', 'MM/DD/YYYY') col2, null col3 from dual union all
  5  select 2 id, 'abc' col1, to_date('01/02/2012', 'MM/DD/YYYY') col2, null col3 from dual union all
  6  select 3 id, 'abc' col1, to_date('01/02/2012', 'MM/DD/YYYY') col2, null col3 from dual union all
  7  select 3 id, 'xyz' col1, to_date('01/01/2012', 'MM/DD/YYYY') col2, null col3 from dual union all
  8  select 4 id, 'abc' col1, to_date('01/02/2012', 'MM/DD/YYYY') col2, null col3 from dual union all
  9  select 4 id, 'xyz' col1, to_date('01/01/2012', 'MM/DD/YYYY') col2, null col3 from dual union all
 10  select 4 id, 'xyz' col1, to_date('01/02/2012', 'MM/DD/YYYY') col2, null col3 from dual
 11  )
 12  SELECT *
 13    FROM (SELECT id,
 14                 col1,
 15                 col2,
 16                 col3,
 17                 dense_rank() over (partition by id
 18                                        order by (case when col1 = 'xyz'
 19                                                       then 1
 20                                                       else 0
 21                                                   end) desc,
 22                                                 col2 asc,
 23                                                 col3 asc) rnk
 24            FROM x)
 25*  WHERE rnk = 1
SQL> /
        ID COL COL2      C        RNK
---------- --- --------- - ----------
         1 abc 01-JAN-12 A          1
         2 abc 01-JAN-12            1
         3 xyz 01-JAN-12            1
         4 xyz 01-JAN-12            1