I am sure they do expect to award less scholarships, however, that does not correlate with needing less boards because one key element is missing in that assumption...the amount of people applying. They will probably have the same number or maybe even more, due to the economy, which means they will review more at each board.
I would assume the reason why they have reduced the boards to a lower number is going to go hand in hand with longer review boards. For example, last yr they had more boards, thus the board met for one day and reviewed X amt per board. Now they will have more candidates that will need to be reviewed in a shorter period, so they will probably have a 2 day board instead to get through the number they deem necessary to get through.
The key for every applicant is to remember there is a limited pot of money, this is wise it is best to meet the earliest board possible. If you are applying for the AFA, the difference there is that you have a longer time to submit your application, since nobody can get an apptmt from your MOC slate until EVERYONE on the slate has been reviewed and given a WCS