Oh don't worry, it's still there. 4k+ players online earlier and I was walking into empty rooms, being ported to unstuck me for "trying to enter an off-limits area" (despite not doing anything of the sort), and even being warped to lag island a couple times (and it wasn't exactly lonely there either).

However, I will say that it does seem as though the game as a whole is functioning better even with the high player count. I noticed some tweaks that made baddies (pyrats and bandits) much easier to kill, despite the crowded server. It was registering my hits even when the baddies were glitching (which definitely would happen a lot). Could just be my imagination, but something seemed smoother.

Server is still crying for an upgrade, but the devs are doing a good job at keeping the game running not too shabby at 4k+ player count.