I've been playing KSP recently and yeah, Kusari is pretty dead. Most activity is traders with the occasional smuggler. And most of them are indies. I've encountered a couple of pirates (less than half a dozen). I've seen more log in, but they mostly stayed in Chugoku, where KSP doesn't really go much, so no interaction there. KNF and hogosha rarely log, though I managed to get a bunch to join in against some nomads that spawned by New Tokyo. The imperals are most definitely dead, and were so before i joined i think. I had heard that there was problems with ZoI (couldn't enter rest of Kusari or something), but being hounded by ace PvPers would have nailed that coffin shut.
Something probably needs to change in kusari to draw more players/activity in, whether starting new characters or moving pre-existing ones into the region.