Other factors accounting for increased applications and lower acceptance rates which oddly the WSJ didn't put in the article:
1. Since 2000 there are 33% more kids graduating HS (3.7m vs 2.8m, there are just more kids)
2. increase in # of grads seeking college degrees (10 years ago 28% of adults had degrees, today 34%)
3. much easier to get money for college (this could be driving #2 as well)
Exclusivity / Selectivity had nowhere to go but up. You see the Vandy stat!? 20 years ago acceptance rates of 46%.