I don't think thats true, most of us remaining after first year are keen to see med sci out; I don't have any intention on doing MBBS, the only thing I'd consider post grad would be pharamacy, and this would only be the case if I found research to really not be my thing.
The increasing UAI cut off does suggest that the course is becomming more and more a last desperato attempt for a number of students to get into medicine. When I first started the level of competition and superior attitudes of certain students did put me off the course (and hence a lot of my current friends are actually adv sci, biotech or bsc sci people).
I remember being in the chem rooms one day and over hearing this girl saying "It's so weird at uni, getting use to 85 being a good mark, at school I never got anything under 95" I had to laugh which drew some interesting face from them in my direction... Everyone soon realises though that there isn't much point going nuts with the study all semester long though as you just burn yourself out.
I'm sitting on a 83.55 WAM at the moment, I'm not sure where this puts me in med science, but my UMAT sux so I've never really given much thought to the transfer program.
A lot of HSCers with 99+ UAI's think medicine is what they want to do, but I honestly believe not to many really understand what the degree involves and if it is for them.
EDIT for Nadine: In terms of electives in first semester you will have one elective, the majority of people tend to pick between maths, phsyics or phsycology. In second semester you won't have any electives as you will have to take statistics for life science. The only other option you get is whether to do Higher or fundamental chemistry. If you did both physics and chemistry in the HSC I'd suggest higher chemistry otherwise just stick to fundamentals and enjoy the fact that the first 7 weeks of the course will just be revision of year 12 chemistry