People basically lost drive from playing VS levelers 24/7 making games wonky overall. The only "competitive" side of it now is trying to do 5-man snipes against each other in pugs, or participate in plebmades (plebmades mostly occur on US).
Basically a lot of people also felt that the essence of twinking was removed when everything became static through the new pvp system (templates). This took away a lot of customization, which turned a lot of people off.
With that said, there are people who still queue pugs, and wargames are still happening (on US). It's all preference as to what you think about twinking currently. But yeah, that's basically the gist of it. I still have fun when playing with friends, and I basically only have time to play on the weekends for the most, so that keeps me away from being burnt out too fast.