I just bought a 2007 Sentra SL. Overall I really like it. My one frustration is with the stereo. I like to listen to my music pretty loud and it seems to turn the volume down on it's own during louder parts of songs. The best example is if I have it maxed during a clean and somewhat quiet guitar into. When the rest of the band kicks in, it will keep the volume up for a fraction of a second but immediately decrease the volume.

I've owned a lot of cars and this has never happened before. It's like there is some sort of decibel limiter built into the stereo. Any insights would be appreciated.
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That's exactly what there is, a current limiter, built into the factory head unit. The reason is two fold, 1. To keep the system from overheating due to the wattage causing excess heat on your electrical components and 2. to protect your speakers from blowing.

 

As a suggestion though, If you want to keep the factory head unit, smiply replace the factory speakers or put a sub box in the trunk with in-line drivers to boost your sound output. The system will still think it's limiting the current, but, the line-drivers will amplify the signal immensley. These line-drivers can be found anywhere online or at a decent radio shop.