Yes, the lack of players is killing it. Part of the reason for the lack of players is lack of good matches also because there are too many match ups so what's left of the pop is spread out too thin.
WvW is dying from a lack of people playing it. Because game has been losing players. Solving the problem would be bringing the players back, changing how the world system works is just a bandaid on a wooden leg.
So by changing how the world system works it will consolidate players and hopefully improve match making. This should also bring back people who have quit like me.