Inflation and overall increased costs are valid reasons (not excuses) as far as I'm concerned.
In 2002, Value rooms were $77 to $124. In 2007, Value rooms (not suites) ranged from $79 to $137. This year, they range from $94 to $194.
In 2002, Moderate rooms were $133 to $219. In 2007, Moderate rooms ranged from $139 to 205. In 2012, the range is $159 to $314 (I think - I can't see the pirate room prices on the itouch). The top price for the non-themed rooms is $289.
Deluxe rooms, of course, are tougher. In 2002, they ranged from $234 to about $800. 2007 rates ranged from $205 to $890. Current rates are $265 to about $900 (again, standard rooms).
2002 and 2007 rates are courtesy of The Unofficial Guide to Walt Disney World; current rates are from wdwinfo.com.
Busy is relative. Air travel dropped off sharply - extremely so - in the months following 9/11. Airlines dropped prices and offered deals; hotels closed wings or floors and reduced amenities. I left Orlando September 8 and had a weeks-long disagreement with someone who arrived on the 21st and had a terrible time at the same hotel I'd greatly enjoyed just two weeks earlier.
One of Walt Disney World's responses to the plummet in tourism was to eliminate E-Ticket Nights.