There were still some people on when I played about three months ago, though it was difficult to find people to play certain gametypes with. There's probably a few still around in the more straightforward gametypes.
It depends on what other types of games you would like to play. There's a few nice bullet-hell games available for the platform like Akai Katana and Triggerheart Exelica, as well as some JRPG's from the early days of the console, some of which are better than others. Whether either of those would justify buying a 360 is debatable, bearing in mind that some of the bullet-hell games have already been released on iOS devices, and some of the JRPG's have also seen releases on other platforms.
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