I don't even understand how admission can get more competitive. I've spoken with multiple physicians during the process and not only have all of them said 'are you kidding, there is no way I would get in or, when I was applying it was nothing like that,' but they have been flat out shocked with some numbers I've thrown out.
I'd also like to agree with you about medicine as a career declining, but I think the absurd number of really idealistic pre-meds, people going into it bc of parents, pressure, don't listen to outside influences, etc will keep numbers continually increasing. The decline has been happening for a while (at least the last 5 years or so very noticably) and applicant numbers still go up every year. There are also a lot of other incentives - stability, helping people, interest in research, etc - that will keep people applying.