Toribash is definitely not dead; it's just a small, close-knit community. This game has no advertising, so it's no surprise there's not many new players finding the game. The game simply hasn't been introduced to a new generation of players, in combination with older players slowly moving on in life and not having much time for tb anymore.
Major props to the staff though; they are doing a great job with all the new items and all the events and stuff. I think the future looks bright for Toribash once Next comes out as long as it has a bit of advertising. There should be a GoFundMe page for Toribash Next, because I'd happily donate a couple dollars if it's gonna help get Toribash out into the world, and I'm sure plenty other people would be willing to help out too.