I thought I would post my experience with LFS since I have not had it that long. This might be a good insight for everyone.
I bought S2 about 12 months ago. I had a G25 and was looking for games that had realistic clutch implementation. After much searching and forum reading I got pointed towards Live For Speed and downloaded the demo. After only a few laps around Blackwood I was amazed at how realistic it felt compared to games like GTR2.
I bought it more or lease straight away and have found it one of the most rewarding and entertaining SIMs I have ever played. I have a pretty good setup with a room dedicated to it, 27" LCD and a pair of 8" Studio Monitors for sound.
I have made a habit of getting friends and family to take the 'Blackwood Challenge' - 10 laps around Blackwood in the FBM and we record their best time on the wall. Much like the Top Gear Hotlap. This has been a hilarious and addictive experience for all involved. Some of my mates' wives and girlfriends are surprisingly fast!
As for my own online racing experience, admittedly there are not as many active drivers as I would like. Perhaps it is just because I am in the Australian Time Zone but I find it almost impossible to find an open wheel server apart from FBM/Blackwood GP. As a big Formula 1 fan I am amazed that there are no F1 servers, full to the brim. Maybe its because the cars are just too hard to drive. Fox Junkies seemed popular when I joined but I rarely see any cars in there now.
I believe the league racing experience is different but I am yet to sign up with any. They seem like quite closed communities so it is a little intimidating to just walk in.
That said though I am still really impressed with the game and have fun racing online fairly regularly. I see people complaining about the lack of new content but I really don't see what that has to do with anything. The game is about realistic racing with real people so it doesn't matter what cars you drive or what tracks you drive on. How does a new track or car affect your ability yo have a good, close race with someone of equal ability? Do you think F1 drivers complain about the lack of new tracks?
There is a very broad range of cars as well. They already have most types covered eg, fwd 4s, awd 4s, rwd 6s, rwd 8s, open wheelers etc. What is the sirocco supposed to add apart from eye candy?
If LFS has a weakness I would say it is a lack of marketing effort. This is an incredible simulator, with a realistic F1 car no less, and I only found out about it after a long time searching and reading on forums. For me as a professional marketer and sales person I think Scawen could do a lot more in this regard.
I believe there is a video of Nick Heifeld training with it on YouTube isn't there? Why isn't that plastered all over the site? And the tyre and suspension physics are said to be the best there is. Why aren't they promoting the strengths of this great product rather than letting people find out for themselves...
Anyway those are just my thoughts. The game certainly isn't dead because people like me are still buying it. 3 or 4 of my mates are going to buy it now after going through the hotlap experience. I think the developers just need someone dedicated to promoting the game.