It isn't dying, just look on xfire, it's currently the 16th most played game online, yes that includes single player and MTA, but 95% of players are on SA-MP, it has more players than Left 4 Dead, GTA 4 (ironic much?), and all Hl2 mods.
However, the current trend seems to not be RW DM, maybe because us who have been playing for years can take on 3 new players at once, kill them without taking a hit, then they ragequit because they think it sucks they only get deagles, and they do not have the patience to learn to fight. SO they go to a stunt server, or pussy out completely and go to a roleplaying server...
And yes, I do believe the server will become full again, not that there's anything wrong with 100/200. And remember, there are more official servers now, and what new players tend to do is click on the official tab, and pick a random one. Less official servers = more players on LW.
DEATH TO AWESOME STUNTAGES AND.... Nova e-sport, w/e the hell that is.