here is how it works:
One person (some guilds have more than 1 stealthing around) from each faction/guild stealth's around the shards hot spots to find out what's going down. When no one is doing anything, All the shards PvP'ers do other things (farm SA regs, craft new suits/weapons, train skills etc.)
Now when one of the stealth scouts finds a group of people doing anything, they send the word out, and up pops a guild/faction to start a fight, next thing you know another stealth scout will find the fight and call in a second faction/guild.
People on both/all sides will die and go into stat loss and then the PvP will stop for 20 mins for everyone to get out of statloss.
While they are sitting out the statloss they will have stealthers going around the shard looking for the next fight.
So you may not see many people in fel, but you cant rest assured the people who play in fel know you're there.