Granted that Academia is very exploitative. My wife is a Post-doc, so I hear these extremely heart breaking stories of how professors have all the power when it comes to graduate students and post docs. But this drop in graduate students is not because of that - this drop is purely because of funding cuts and the AI hype. Why would humans wanna go through a Phd when you have industry leaders harking about how AI is going to do original science, when the political leaders of the country wanna cut funding for basic science research. On a slightly different note, China increased funding for the basic science research. This is peak of "how to shoot yourself in the foot".