Our PW, Markshire (
www.markshire.com), jumped in to being about 2-3 years before NWN2 launched. Well into the game's life-cycle. We built up a solid playerbase and had hoped to make the jump to NWN2. That didn't pan out so now we've taken up the building blocks again and have started to assemble our ideas for Markshire 2 in NWN1.
What I've found since starting this process is that the community for NWN1 hasn't stopped building. There are HUGE improvements to the graphics/models/textures of tilesets. Many of which rival NWN2. Check out
NWNCQ for starters. There are some amazing new custom content developments out there. Scripters have taken advantage of all that 1.69 (the final patch) has to offer which was significant.
So while some servers have died off, others continue the efforts to make NWN1 their home. Our original server, Markshire 1 (see my signature) continues to see use. I know there are new servers coming online frequently ... see the latest on the Vault ....
New Gameworlds.
In my opinion, NWN1 is far from dead. Like Diablo and Baldur's Gate before it, NWN1 will continue to enjoy a long life ... as long as BW and Atari let us.