People certainly still go. Not sure if it's the same kind of crowd, though, as several years back.
If you search around the boards a bit for Pleasure Island threads, you'll probably see some interesting responses. I know a lot of people have had some bad experiences lately, there's plenty of reading on those topics.
That said, I was just there October 11th, and I had a great time. We went to the Adventurers Club and 8 Trax, but that was it. I didn't notice any particularly obnoxious behavior or rude people, but then I wasn't really looking for them either! I like going to PI from time to time, it's cool.