I'm not sure if smaller tanks are "in"; but a lot of people with bigger tanks can't afford them. I think it is sad to see how many tanks are being broken down and sold but hopefully as the economy picks up people will replace and upgrade.
On the positive side, the cheap tanks and equipment help some people get into the hobby. I was willing to spend a few hundred dollars to get started so I waited and searched on craigslist for a deal; if I had to get everything from an overpriced LFS for $1,000+ there is no way I would have gotten started.