There is a modding community of sorts and from a mapping viewpoint things are going very well. The modding community will never have the same following or involvement as other Unreal Engine based games but more people are joining than leaving and that's a positive move. Have a look at some of the modding/mapping that's coming out and you can decide for yourself if it's dead. http://rc.injapan.org
From a game point of view the clan base is also limited when compared to other games out there. In order to stimulate more interest in RC we set up a Bactaweek event at http://www.eclipticalrealms.com
We're about to start our third battle and have 8 clans signed up out of about 15 registered RC clans. The modding community benefits from the gaming community and vice versa. The gamers like the new maps and the modders like having an audience that plays the maps.
A small community? Yes, indeed.
Dead and Buried? There's still life in the old dog yet.
We keep maps made by the community here.