My wife is a pediatrician, so she examines the babies and talks to the Moms in the first few days of life. She says that she's seeing MANY more ELECTIVE c-sections than even just a few years ago.
She attributes some of this to career women liking the idea of being able to schedule the birth. Also, as more people move away from their families of origin, scheduling a birth may be more important so relatives can more easily plan for travel in order to be there to help out, ESPECIALLY if the new baby has older siblings that need taking care of, also.
But she attributes MOST of the increase in incidence of c-sections to obstetricians. She says that studies have shown that there are fewer total complications (meaning to Mom and/or baby) or at least less severe complications following c-section than there are after traditional births. Fewer complications equals fewer lawsuits equals less of a chance of huge increases in malpractice insurance premiums.
For the record, my wife wanted no parts of a c-section. She's attended hundreds of them and she always said they completely freak her out (not as a physician, but as a person). Our 6 year old was a totally event-free pregnancy and she was able to deliver in the traditional way. Our 3.5 year old was breach. She REALLY didn't like the prospect of a c-section, but we decided it was much more of a risk to have a perinatologist attempt to turn our baby while still in my wife's belly so the baby wouldn't be breach anymore. Reluctantly, she decided the c-section would be better, and we were very lucky. Even with ultrasound, the doctor's didn't see that the umbilical cord was wrapped around our daughter's neck three times -- if we had the perinatologist attempt to turn her, we would have ended up depriving her of oxygen and my wife would've had to undergo a "crash" c-section, which means the baby comes out in 90 seconds or less and you pray there was no brain damage from oxygen deprivation.
If we were to have a third baby, my wife said she would want to do another traditional birth because she thinks it's just the natural thing, and is actually better for the baby (as long as there aren't complications). And as a pediatrician, she's very uncomfortable with and displeased at the rise in "voluntary" c-sections. To be fair, even though she says v-birth would be her choice, her recovery from the c-section was easier for her. She said the pain and discomfort from the c-section incision was much easier for her than the pain and discomfort from her episiotomy.