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My experience has shown that users are more selective in which applications to add, knowing that many apps are spam and will spam their friends endlessly. Also, I would guess the novelty of apps has largely worn off.
This decline really doesn't surprise me, much like any other marketing venue reaches a peak after being accepted by the masses. Crowds are not stupid, nor is Facebook Apps the golden ticket to marketing. It is so saturated now it is "just another tool" marketers need to keep in their tool box.
In 2-3 months, only the "worthy" apps will be standing.