Reality....there are more people TRYING to be wedding photographers because of losing jobs in this crappy economy. Everyone who had bought a "prosumer" level camera had some business cards printed up now is shooting CraigsList weddings for $250!!! I've been at this for over 30 years, full time and now retired shooting part time, and have never seen the wedding trade so crowded.
The prospective clients are looking for bottom line pricing. That is nothing new since they always have. The big problem is that the bottom line pricing has gone so low there are going to be tons of disappointed brides and long time wedding photographers will be painted with the same brush as the CL crowd.
The trick is to find a niche, set a price level and not try to compete with the CL shooters. Tough at times but in the end it will be you who benefits from holding your line. Try not to get swept up in the race to the bottom. It's a sure fire way of going out of business. From my own experience those who demand the most for the least are the biggest pain in the asses and will try to squeeze every single nickel out or your pocket because they "can't afford it."
My philosophy is...I"m not worried about their income, I'm worried about mine" Hold your line or they will squeeze the life out of you.