I got it for free when it was free for PSN+ users. And in the 7 or so months that it's been on my HDD, my pawn had only been used by someone else, 2 times.
As for your question, no. The pawn system won't break even if no one plays. Reason? Tons of NPC pawns are in the game. As well, as pawns from people that likely gave up on playing long ago.
The thing about the game is that it only has one character save. Only way to get more than one is to make a new PSN account. And a single pawn (your pawn) is tied to that single character save. If you overwrite the save with a new character, you lose all the progress done on your previous character. As for difficulty mode changes, they can be done at any time, but when you do it the storyline starts from the beginning, again. But, you keep all your items and leveling.
Anyways, when you make your 2 characters, you better like what you've made, because you'll be stuck with them. Can modify their hair, but that's about it.
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