I've noticed this. Several months ago they changed everything around and it was fricken annoying! The candy aisle has more gourmet stuff that's ridiculously expensive. It may cost more in a fancy candy store, but still, $10 is a lot to pay for an 8oz box of chocolates. And the aisle with the candles now has those reed diffusers that somehow have become so popular; along with the simmering oils that are $2 for a flippin ounce. They expanded their electronics and sell Blackberrys now too.
I seriously doubt they will keep the upper middle class if this economy ever turns around though. The stuff may seem fancier to the average person, but even I know it's still cheap crap for the most part. Alx is right, Walmart's reputation isn't going to change. I have an inkling that that people who shop there now out of necessity will go back to their favorite department stores as soon as they can afford to.