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I'm on Landroval. Most of the times I play it shows 250-550 non-anons, so take that for whatever it may be worth.
Plenty of Games that are Online will have far larger Playerbases especially for Concurrent Player Numbers.
Maybe, but it is a niche game so maybe not?
Also the numbers really only matter considering what you want to do; you still see big RP events, people still raid and the festivals are nicely full.
To give an actual amount of accounts back in 2020: September 2020 was reported to have had 108,000 Accounts login during that month.
Compared to the highest amount playing using Steam on any given day was 1,523 Steam Users who had LOTRO running back on September 8th, 2020.
Granted that was heading towards 4 years ago, during the "Pandemic Year", and so on, that should highlight how there is very limited numbers using Steam to run LOTRO versus the Standalone Client for the Game.