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Has anyone ever heard of or know of a site that follows SW fares and then sends out text or email alerts when they drop? I have never found one but thought it would be a great idea.
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It is a great idea, but Southwest won't allow it.
Some people have reported success with TripIt Pro, but in general, most fare tracking services don't work with Southwest, since Southwest doesn't publish their schedule or fares anywhere outside of their own websites. And they don't allow access to third-party services who try to "scrape" data that is available online. In fact, Southwest has gone as far as to take legal action against those who have tried.
Southwest allows customers to refare previously booked flights, without a change fee, when a fare drops. They would lose money if there was a service that helped facilitate this. So it's likely never gonna happen.
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Triphound sends me some updates once in a while that include Southwest routes, but I don't know the coverage exactly, or how they are checking that others aren't.
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Here's some details about the latest such service to be shutdown by Southwest:
How Southwest Airlines kills startups that monitor its prices
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