But those states have a lot of people!
Well states with tons of people makes those schools even more competitive. I'll give you the benefit of the doubt and assume you are saying those new schools must have large classes since they come from states with so many people. So let's look into that.
What you are trying to say is one of those things that sounds like a good theory but lets actually look at it
For baseline comparison the average MD class has say 140-150 incoming students. Here are the stats from all MD schools to open since 1981
UC Riverside: 50 matriculates
Central Michigan: 104 matriculates
Oakland: 100 matriculates
Western Michigan: 54 matriculates
Va Tech: 42 matriculates
Commonwealth: 100 matriculates
Quinnipac: 90 matriculates
Cooper Rowan: 72 matriculates
Texas Tech Foster: 104 matriculates
Florida Atlantic: 64 matriculates
Hofstra: 98 matriculates
FIU: 119 matriculates
UCF: 120 matriculates
Cleveland Clinic: Roughly 50
FSU: 120 matriculates
So as you can see not a single one of these schools has a 1st year class that is even the average size of MD first year classes. Like I said above it sounds like a great theory to say that "there are tons of medical schools opening up and they have big classes so that negates idea that it is more competitive due to the fact that stats are rising". But when you actually take a closer look at it we are talking about roughly 5 school over the last 35 years that have opened up that don't have strong IS bias and have a total of 400 matriculates a year. That's what you are going to go with; 400 extra matriculates accounting for the rising stats of these schools? And like this data proves, the schools with IS bias don't actually take all that many students at all; all are below average in terms of matriculates they take a year.
So if you want to go with the default "we'll agree to disagree" that's all well and good but at least realize what the facts are and realize the argument you are making when you say the rising stats aren't a big deal because there are more medical schools now.