Balmung RP is very much alive. Step into the Quicksand at almost any time of day and you'll see it absolutely everywhere, and you're more than likely to stumble across it out all over the world as well. There are MANY dedicated RP FCs, plenty of RP optional, and RP linkshells as well; it's an extremely active community and, for the most part, open to jumping in. I prefer private RP myself, just 'cause it's easier to work out larger-scale plots with a smaller group of friends, but I know plenty of people that love a good walk-up!