The drop rate hasn't gone up, just the number of people doing GG has skyrocketed due to the Shells dropping there that are used to buy Crimson stat'd equipment.
lol this is probably true.
I can confirm that it drops in goblin minigame, mine dropped one of the wind elites I think, in the center ring. I've done it semi regularly in the past and not seen one tho.
I also recently got my hands on Ancient Spirit Water recipe from CoOp as well as Unimaginable Salad, other recipes I haven't seen for a very long time.
Edit: Drop rates are fairly dependent on level of mob vs character level. Now being 62+ the drop rate on level 50 mobs is pretty low.