All factions are suffering. It's not only the Outcasts. From my perspective when I login to talk to people, it seems like everyone is running around on factionless characters. No one is really apart of a faction these days (me included). Everyone just wants to play on their own. There is very little, if any, communication between folks anymore. In Skype or otherwise.
From experience, when a HUGE RP event is planned, it normally generates activity. It just takes the right kind of event and the right people to get it going.
~Leo
P.S. If you want someone to get things rolling for Outcasts, I can make a character to join to fly around and harass people. Just say the word.