Server population is not an indicator of server health by any means, most times anyway.
Currently on p99 there isn't enough content to support the amount of players who play here, and the stagnant nature of the raid scene pretty much makes the entire situation worse. Velious will help, but not completely fix the issues.
In fact, I don't think project1999 is dying...
I would say that the main issues facing project1999 are created by the player base, and can only really be fixed by the player base. TMO ruins P99 for a lot of it's players, and forces them to leave the server to go other places with their shenanigans. The only way to solve an issue like this is for players to join forces and work together to achieve their goals, because the GM's/Devs have taken a "Its on you" stance towards such things.
I think the people who are saying the server is dead are those who are cockblocked by TMO out of end game raiding (for 2 years I might add) and those who just simply wont ever be happy with EQ regardless of the circumstances. Im sure the red folk whos server quite literally IS DEAD, speak about dead servers often as well.
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-Aftermath-
Tasslehof - 60 Druid
Barlow - 60 monk
Blueberrii - 60 Mage
Gigglepurr - 60 Shaman
Kids - 60 Rogue
Fornfamnad - 60 Cleric
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