That's 100% right in terms of the information our CSO guy gave us.
The CSO explanation of why the market is favorable for law students is that, at least in regard to Chicago, many LA/DC/NYC firms are expanding into the city. So now the "homegrown" law firms from Sidley/Winston/Kirkland on down have to compete not only with each other but from these new branch offices.
For the top students in the Chicago schools, that means a lot more callbacks and offers.
My call back was a 4 hour series of "interviews" in which it was lawyer after lawyer selling the perks/benefits of their office over the competition.
Still seems pretty f-ing competitive to land something if you are not on Law Review though.