Is the field of law becoming oversaturated

Answer 1

There's way too many lawyers, but there's not too many lawyers in certain fields.

Foreign language speakers (interpreter/lawyer) and attorneys with EE, CE, or CS undergrads (patent attorneys) are in higher demand than other types of attorneys, and the supply is constrained.  I suspect the security clearence you've obtained from the army and your service in the army will give you access to government attorney positions not open to most applicants.  

Law is a very lucrative career, but you have to find a niche where the amount of applicants is limited.  Otherwise, you're going to be entering a very competitive field.

I wouldn't reccomend law school to anyone that does not fall into any of the above catagories unless they're admitted to one of the top 25 law schools or so.  Although a career may interest the majority of law school grads, the reality of the situation is that a large percentage will either only be able to find a job paying 35-50K on graduation or have to work for a temp agency performing mind-numbingly dull document review under unpleasent conditions.

Good luck.