Ok, let us go around the housing ward of my FC house right now...
Current Gallery of all MB/Bells in my ward
Yep, you saw right, in the entire instance it was just me, and two people on the opposite map from my general house (that I think were AFK).
I ran into no one else on my 'tour' through the ward. Not standing outside their house, anything. So the whole instance of LB1 subdivision on Balmung (One of the high population housing-intensive rp servers!) -- there is a grand total of three people in it. Me, and two people afk.
Really feeling that MMO feeling.
At least if it was instanced and I knew it was just supposed to be me + my friends it would not feel so dead/like a ghost town.