I don't think the population implies anything about the server "dying" in these circumstances. It has been a long time since a major content release, Diablo 3 came out recently, and it is summer time. Every mmo experiences a slump in population over the summer.
It is more difficult to find random groups in general, but they will still be there in your major grouping hubs. If you roll with friends this won't be an issue. I was able to fully equip a new character fairly quickly, though I found myself using the EC forum more than in the past.
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