Short answer, yes. That would seem normal to me based off what I am seeing spec wise for this light. As a side note, I do not own this light and thus would not be able to tell you from experience.
Basically, here's what I am seeing that makes me say what I did. First and foremost, Coast tends to have direct drive like regulation patterns. This means the light output will begin to get dimmer the moment you turn it on and keep getting dimmer and dimmer until it dies. This isn't so bad as it allows the light to run longer than it other wise would and it let's you know when you need to replace batteries. Bad news is, if you needed that max brightness then you're not going to be very happy after about 5 to 10 minutes of use.
The other factor I am seeing is the battery configuration. AAA batteries will not be able to handle as high of a draw as larger cells and will cause the light to dim as the voltage in the cells sags under the loads. I don't know what LED Coast is using so I don't know how much current is being pulled from those batteries. Another factor that will multiply this almost infinitely is if you are using standard Alkaline batteries instead of quality NiMH rechargeables. Alkaline batteries can not handle any kind of high draw for any length of time.
If you are using Alkaline cells then you would get a marginal increase in performance out of NiMH cells. Eneloop is one of, if not the highest quality brand out there. You can find some of their cells rewrapped and sold under a different brand name. In example, Duracell uses them in some of their rechargeables which has earned those cells the nickname "Duraloop". You can find them cheaper that way sometimes.
Unfortunately, a lot of light companies tend to use regulation patterns like this as a way to market longer run times. Some companies that are known for this include: Maglite, Streamlight, Coast, Inova, etc...
That being said, it's pretty much a preference thing. There are a fair amount of people who prefer their lights to tapper in output as they go.
Hope this helps, :welcome: