Yeah, I'd have to say that my server and the various other servers that I've "guested" to are often either listed as "full" or close to being full capacity when I'm looking at the server browser. Now that could be an artificial label to make it look busy but Lion's Arch is always packed full of people when I hop into these other servers. I think these Living Story updates are bringing back people to the game.
And with the whole "new Living Story content every two weeks" thing, you can't really say that they're slow with the new content anymore. These updates usually add great "quality of life features" as well, such as the Wallet or Achievement Point rewards system. I'd actually like for them to slow down these updates a bit or to add on an extra week for these new updates because it can be a bit overwhelming if you have to miss out on a week due to work or other obligations.