Something is eating those babies! I would sprinkle them with sevin dust and water by hand for a few weeks - they should bounce back.

Well i think i found the culprit unless its a combination of things. I was watching last night at sparrows picking at the leaves of my peppers. I don't even know how to deal with sparrows other than a BB Gun. Its wierd because they haven't bothered my peppers in the past. I really don't know what attracts on the wildlife to my garden anyways but it looks like its the work of these dang sparrows looks like i'll be buying a BB Guy tonight.

You could cover the plants with floating row cover. Or build "cages" of hardware cloth.

Here's a humane solution for sparrows.
Buy some pinwheels and keep them in your garden (close to the plants that you want to keep them away from), that should keep birds away.