RP has declined on LS, sadly. (I'm told it's declined everywhere but I can't verify that for myself.)
However, there is something of a renewed interest in it of late.
RP occurs at the weekly Community Meetings in Skara Brae, though they are not specifically made for RP.
The High Council of Britannia still meets on alternating Mondays (tonight for example).
Sadly UOLS.net is dead for the moment and, while I maybe shouldn't say this, I doubt for its future. (I would dearly love to be 100% shown up on this one, though.)
The Gray Company (TGC, a guild that has RPed being elves for many years now) still exists, as does the player town of Tel'Ruid (home of TGC). I myself GM a small RP guild that's allied to TGC (Friends and Allies of the Elven Glade, TEG).
Are you the Piper from long ago? Kitiara's sister?
If you're not, are you the Piper I see around at the bank periodically?
-Galen's player