Here's one for the archives. Thoughtful and polite.
Dear Dr. __________:
The search committee received and reviewed 112 applications for the position of ___________ specializing in ______________. A good many of the applicants presented excellent qualifications, and we found ourselves wishing we could make several appointments.
In the end, it was necessary for us to choose those whose profiles best suited our present needs and future plans, and we narrowed our choices to three finalists. It is with regret that I must inform you that your name was not among those selected.
We thank you very much for expressing interest in our position. I am sure that I speak for the entire committee in wishing you all the best of success in the future.
Not that I wouldn't prefer to receive a phone call instead, inviting me for an interview. But, we takes what we can gets. It will all click into place, somewhere, somewhen, somehow. I've got to believe that. In the meantime, I keep plugging away.