There's actually over 300 servers now.. or at least as of last night. Not sure why you can only see a few. A great deal of them are full. Well, it seems that people favor the servers that max out at 20+ players. So the smaller servers may be empty or have very few people playing in them.
There's still a massive issue with the netcode and game optimizations, so lag causes problems with hits. However, smaller servers (up to 18 players) tend to have less issues with this lag IMO. And with less lag, the amount of shots it takes to kill really depend on where the shot hits. A head shot, regardless of weapon is an instant kill and usually that person can't be revived. Some types of shots don't matter on location, they can cause an instant critical condition (hitting arteries, etc.). But critical doesn't always mean incapacitated.
Overall, there's still plenty of bugs that need working out. But the amount of hardcore fans of the game out there will really keep this game alive.
As for who, out of PnX, is playing - Smonkey and myself play almost every night together using 1RD's Vent or XFire to chat (I can't log into PnX TS because of a router in Boston that I can't seem to get any help with). Gene's played a bit with us, too, but I think he's just about had it with the bugs in the game. Last night we had Myst, Smonkey and 1RD's Revelin all playing on the same server and laughing our asses off. I had to pull myself away before I ended up staying up all night. Was a great time despite the issues we all ran into (I landed in jail thanks to lag, and I think Rev did just as I was leaving for the night LOL).
So no, the game's not getting tossed. There are still plenty of issues that need resolution, but they've been making good efforts to fix these issues thus far. Hopefully they'll have the biggest of them all fixed soon.