I'd say the only downside of playing on blue is how much wealth some people have been building up over the years, if the goal is to catch up to them you're not gonna have a good time.
As far as population it's still very healthy, sure unpopular zones will be often empty, but the popular ones are not overcrowded, you will be able to exp in highkeep and level super fast if that's your thing, you might have a bit of competition for the best areas but nothing too bad.
Also the gear progression is enjoyable, everything is pretty cheap at least to a certain point, for 100p you can buy some incredible weapons and piece of armors compare to green. The only thing a bit lacking are porters, it used to be way easier to find a ride at any time of the day, now it can be hard but nothing impossible.
As far as difficulty sure the cheap gear helps a lot and make leveling easier, but at the same time exploring an almost empty dungeon is a lot harder, you can't just move anywhere safely because mobs are pulled constantly, you have to actually learn where the pather are and how many mob spawn where etc, i find it a lot more enjoyable.
edit : as far as powerleveling, there isn't that much of it in my experience people prefer to twink a toon and group, so if you group with random people you will sometime have a guy with absurd gear and some high level toons camped nearby to buff, rez, etc but you can keep the game fun by doing bigger pulls there is plenty of mobs to pull on blue everywhere.
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