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Long answer: Day in and day out number of applicants in State exams and Gov Job exams is only increasing. There is no end in sight as to when this number might dip (if it does). Truth is, except for certain pockets of metro cities, majority of this country still believes that a gov job is a one step solulu to their average lives. We cannot sit in judgment if that is true (Because who knows?).
I think over time this number is eventually going to increase only and not dip. I think part of the reason people around me think that the charm is decreasing is because as we grow older we get into groups which grow apart from people who are prepping for gov exams. I have personally also lost touch with friends prepping for gov exams and hence believed that the charm is going down, but boy was I wrong.
UPSC civil services is more than your basic salary,wages, incentives. It's about power.
As it's said. If you're uneducated and want power, join politics. If you're educated and want power, join IAS.