Yes, I have noticed this as well. I much prefer the hourglass look, especially for me because I have small hips. Plus, my boyfriend would hate me forever if I developed a muscular middle (he despises that look).
I also lost more inches off of my hips and thighs (it happened really quickly, too) than my middle, which makes my waist look bigger than it is. Plus, I have to buy tighter pants to fit around my hips, but than the band is often too tight around the waist.
My new approach, which I will begin after my strength rotation, is to really work on gaining muscle in my lower body (Cathe has a couple of lower body rotations that look great). I don't have much fat around my middle, so losing that won't make too much of a difference. However, I am hoping that the combination of less tummy fat and bigger legs WILL make a difference. This way, I will have to buy larger sized jeans that won't squeeze my middle.
My only problem now is making myself do extra leg work. I absolutely loath leg work. I feel so strong doing upper body exercises, but I don't feel anything close to that with lower body. I just feel bored and uncomfortable, if that makes sense. However, I did PUB and MM lower body late last night and it went pretty well. I went really heavy on the barbell and I already feel it today! I still hated doing it, though...