The good thing is that baby boomers are starting to retire. More jobs for us! Also, now's a great time to go into geriatrics 😀
But honestly, when you're starting college, EVERYONE wants to be a doctor. By sophomore year you're taking OChem and/or physics which, at least at my school, cut the population of aspiring med students by 30%. By junior year people are starting to get burnt out, and people are taking the MCAT and getting a dose of reality. A few more people are ditching the med school idea. By senior year, "pre-meds" fall into two categories: those who are applying right away or will apply within the next two years, and those who want to "strengthen their application" and "eventually try for med school". I don't know how many people in the latter category eventually buck up and apply.
Also, more people applying to med school doesn't necessarily imply a stronger applicant pool. The truly passionate and motivated people probably didn't choose medicine because it's a guaranteed job. I'd imagine the competition for top 20 schools won't change much.