There was an updated client with different graphics (whether or not these different graphics were an update, a regression, or a lateral move is technically a matter of opinion).
It is known as the Enhanced Client. Not many use it as far as I can tell, but those that do seem to like it a lot.
UO's population is surely down from its peak but that's not a fair comparison. There's no sign the game is any particular danger (because rumor mongering on Stratics doesn't count as a "sign"). The number of people you see tends to fluctuate widely. Some shards (servers) are small but seem to really like it that way. Two, Great Lakes and Atlantic, are still known as being comparatively large, especially Atlantic.
The figure we use is about 50,000, partly because it just feels like it's right, and partly because anonymous but credible-seeming blog posts claiming to be from insiders have used it. Also, the last official figure we had was 100,000, just before the release WHO. (Unfortunately, folks didn't believe this even though there was no reason not to.)
UO's player community remains right on the edge of crazy. Responses to this post have already begun to reflect that.
You can expect that people will use this thread as an excuse to talk about their favorite pet gripes, proposals, and accusations.
-Galen's player