My reward went down a little bit these past 2 blocks. Is that because of the new hashing power that has come online?
Yup...you are correct, Grasshopper...our individual percentages decrease as the pool hash rate increases...but the balance is we find more blocks.
She's correct. If you look under the "Accounts" tab then choose "Rewards", you can see you N Average and your %. It's always fun to compare all of those stats.

Especially if your % increases!