While the article looks like it was written (or rewritten) by a reporter or newspaper editor, the underlying basic info could still be correct. Forest fragmentation does affect the population density of various animals--some require deep interior (unbroken) areas, some do well in edge zones (eg deer). And the effects of the different population densities will reverberate throughout the other species in the ecosystem. So actually, one should be surprised if there weren't effects on diseases such as Lyme.
Also ticks get on humans when the humans brush on vegetation. Broken and transition areas tend to have more brush than do established interior areas.
BTW1: Ticks carrying Lyme disease do not require deer--they can live on other species such as mice.
BTW2: It may not be the optimum way to use it, but DEET on clothing works too.
BTW3: There was a Lyme vaccine, but it does not appear to have been very effective. IIRC, it has been withdrawn from the market.
BTW4: Yes, from what I have read, drought is likely to reduce the tick populations.
And yes, it is entirely possible that the above or similar factors could affect the incidence of West Nile too. The drought is likely reducing the mosquito population too.
Doug