A new board took over the administration of the race. It has changed the focus of the event to fundraising for the town. The goal is no longer about fielding a long and deep field, it is about raising money. The elite budget has been cut as a result. Thus, less runners will get transportation paid for. There are less people being put up in host family's homes. Travel isn't cheap. Hotels command 3 night minimums and $300 per night rentals. That's a lot of money.
The changes in sponsorships resulted in less money for the prize field, in some respects. I say less because the total prize money is the same or slightly less than prior years. Less money and number of spots are offered for top American, top Masters. Overall though, it's a small amount of money that people are really competing for.....
The race is also beginning at 9 am now, so if you are not staying in the area, you have to be out the door by what - 4:30-5:00 to make it to the start area in time?
And finally, Dave McGillivray as the RD's MO is to advise the board that they do not need to spend a lot of money to get a large elite field. The average person in the crowd or reading about this race will know maybe one or two names. So it will look good how fast the race was won in, but no one is going to care that 25th place was a 5:30 pace now, when it used to be closer to 5:00. And while Dave is correct and the Board is also correct - it does not affect the popularity of the race - it does impact the ability to promote running, the sport in general, etc..
I would also add - there are many more road races out there, the track meets over in Europe, the IAAF world championship meets, etc... In 1995, the year cited above, Beach to Beacon had never been conceived (the Rock n Roll series hadn't even gotten off the ground), and the prize money in relation to the cost of living was worth it.
There are philosophical arguments as to whether Falmouth should refocus on the elite/sub-elite field, but the fact is, it won't change a thing. Next year the race will sell out and continue to reject record numbers of lottery entrants. And the race will continue to raise a boatload for charities and the beneficiaries. None of that is going to change. And I suspect that a lot of other races are the same way (I'm looking at you Boston Marathon.....)