Demand for legal services? I don't know about that, but demand for lawyers has definitely been suppressed. When the recent downturn took effect, firms quit hiring for 2-3 years. This left multiple classes of law students unable to find jobs. The firms also cut the paid internships. The hiring hasn't returned to the previous levels and the internships are still scarce.

I don't think we would be looking for a decrease in demand for the service as much as we should be looking for a decrease in demand for people to provide the service (likely due to increased efficiency by the service providers).