Actually, this sums up the situation quite accurately. When the economy is in a recessive state, applications (and thus competitiveness) to graduate and professional schools increase. When the economy goes back up, it drops off. The relationship isn't a coincidence; when the economy is in good shape more college graduates can land a job straight out. But when it is bad professions like medicine offer a more stable future. This is why applications dropped off in the mid 90's, because our economy was kickin then, and why previously it had peaked in the late 80's/early 90's, because it was slow then.
Also, don't be forgetting about the recent changes made to the MCAT. Now you can take the test much more frequently. I would bet this has a lot to do with more people applying as well.
Put it all together and competitiveness goes up. It is true that admissions offices recieved a much greater number of applications this year than in years prior, and the average MCAT for matriculants has been on the rise, now at about 31-32 for the allo class of 2011, and will probably go up.