Where has it gone..
Some have left
Some have returned but what was there is no more
Houses.. many houses and more coming
The grind ... the game is grind based, which is a time sink. So people will go grind rather than "hanging around"
What can you do
RP in hotspots (towns, inns)
Events - check out this forum for events
Link Shells - find some RP ones, though I have all but given up on these
Free Company - probably the best option, band together with like minded folks
Always be ready to do some casual RP as you go about things, I try to be at least semi-IC and you do get fly-by RP chances.
And make it easy to RP with you, have some opening lines, something to share, show interest etc..