tedster - 4:14 am on Mar 13, 2012 (gmt 0)
I've seen no evidence of overall shrinkage. As much as our attention here has been on Panda, it's still been a pretty small sliver of all websites - and many online businesses have still never heard of "Panda".
I've been working with one site that really needs to remove 90% of their content - it was the kind of thing where they created one page for each and every keyword phrase they thought could bring traffic. Deadly stuff for Panda.