Whether EQ is going downhill depends mostly upon the person asked. I suppose that if you asked a person who was with the game from beta, that he or she would say that the game has indeed gone downhill. If you asked a person who has just started playing the game, by contrast, they would likely say that the game is just fine. Both, in their own ways, would be right.
I started playing in July of 2003 just before LDoN came out. At the time, a new player was extremely dependent upon the knowledge base of others within the game. I watched ooc chat intently just trying to figure out what I was doing. In the first few days, I got slaughtered numerous times. Half the time, it was by guards or other "friendly" NPCs just because I forgot to hit the space bar before typing my /say line. Back then, auto attack was initiated by hitting the letter "A". I know I wasn't the only one who met such a fate, as there were loads of fresh corpses around most of the Guildmasters. Changing it to "Q" was possibly the best change EQ has ever made in the game, IMHO.
Having started when I did, I can only imagine the difficulty faced by those intrepid souls in the early days of EQ, when the knowledge base was slim among players and there were no tutorials and few, if any, in game quick tips on which to rely. Further, the equipment was rather weak. A fine steel weapon was major league uber back in the day. At the beginning, an "uber toon" was someone who had made level 20. People were likely nicer back then, because they HAD to be. If you were a jerk in those days, and even in the days when I started, you might have a hard time finding a decent group. Oh, you might find another group of train-raining, ninja-looting, kill stealing freaks, but you would likely not survive the day when your group wiped.
While I have fond memories of EQ in the summer of 2003, I still remember the camped mammies, the high level of kill stealing and training and the fact that the jerks in the game tended to be more dangerous to my toon than any moron with a knack for flaming people in general chat. Remember, back then, if some idiot trained you (often to steal your camp for his group or for farming purposes), you had a tough time merely looting your own corpse. Now, we have corpse summoners at the Guild Lobby. Besides, trains are not all that common nowadays. At least a lot less common than when Crushbone was akin to Penn Station, anyway.
I know I am rambling, but I know that EQ has in many ways given into the market and WoWed itself a bit. I also know that there will come a day when EQ is one of the freebies thrown in when a person buys another game. In my mind, that is probably as it should be. I also know, however, that this is the first such game where the developers tried to get it right and actually came close enough so that the game has lasted eight years. So, instead of whining about the fact that it is going downhill, I tend to be amazed that it has lasted eight years. And yes, eight years from now, even if some other game or hobby has lured me away, I will want come back from time to time to revisit my old stomping grounds. I hope they are still here when I do.