There's a wonderful series of blogs about law school economics and the changing needs of the profession over here, on legal times. A taste:
Personally, I'm in the camp of people who believe that the legal education model will change. However, it's apparent to me that changes must come predominately from outside of schools and the ABA Section of Legal Education. Survival instincts may prohibit even well-respected, well-meaning faculty scholars from adequately assessing the scope of the problems with the current law school model. But the increasing interest from U.S. Senators should signal to the uninitiated that law schools cannot continue to operate in a bubble. Nor can this discussion continue if everyone ignores the crux of the problem: intolerably high costs and an unacceptable number of unprepared graduates.