At my program (mid-tier east coast program) the caliber of the residency candidates was really disappointing this year. The NRMP "advance data tables" (
http://www.nrmp.org/data/2011Adv%20Data%20Tbl.pdf) show that the number of US graduates matching in Pathology was lower this year than in any year since at least 2006.
2011......... AMG......Total .............................2010 ....AMG .......Total
Offered .....Filled.... Filled .......................... Offered... Filled........ Filled
518 ..........269...... 476.............................. 503....... 327.......... 484
Also there were 25 unfilled programs this year and 42 unfilled positions going into the scramble.
Therefore, this data would certainly support the view that interest in pathology is declining. It isn't any wonder given the state of the job market in pathology.