Gentlemen, When in doubt, check the research:

http://www.defenders.org/wildlife/wolf/idaho/peer_review.pdf
http://www.npwrc.usgs.gov/resource/mammals/severity/results.htm
http://oregonstate.edu/dept/ncs/newsarch/2000/Sep00/wolves.htm

A couple ofstudiesindicated that the native aspen stands and other elk habitat have declined dramatically in the past few years. Here is a quote:

"The loss of native aspen groves in Yellowstone and other areas of the Rocky Mountains is reaching crisis proportions, experts say, having declined as much as 50-90 percent in certain areas".

Less habitat equals less elk. One Idaho study showed that bears and mountain lions were the primary cause of elk calf mortality (42% and 36%, respectively) and that wolves accounted for 2% of elk calf mortality. A study in WI showed similar conclusions.
http://www.wolftimbers.org/Studies%20show%20elk%20calves%20less%20vulnerable% 20to%20bear%20predation.html

However one study,

http://fishandgame.idaho.gov/cms/wildlife/wolves/background/DraftProposal.pdf

indicated that managers felt that wolf populations in a couple of Idaho GMU's were too high, and recommended reducing the wolf numbers by 75%. So I guess you guys were right.

The little red riding hood comment refers to the "little red riding hood syndrome" Everything is blamed on the big bad wolf.