so says the NY TImes http://www.nytimes.com/2012/03/20/business/for-lsat-sharp-drop-in-popularity-for-second-year.html?_r=1&ref=education so even undergrads have figured out that there's too many lawyers.
It's come to the point where law school isn't that smart an investment for most students. Jobs are hard to come by and the costs of law school have skyrocketed. For example, my school cost about 18K/year my first year. Now, ten years later, the cost has risen to an eye-popping 43K/year, not to mention the 20-25K/year in borrowed living expenses as well, and opportunity cost. Oh, and for most (including me), law school is a loathsome experience. I'm far better off having gone than not, but if I were considering starting school now, I would either find a school offering $ or simply pass. It's just not a good bet right now, and it looks like prospective students are realizing this is the case.
I plan on going, but it will be a free (actually I would be paid to go) if everything goes as planned.