I think it's because we are getting older, Habbo is getting younger. Not much interest in it anymore.
Habbo have taken their customers away from Habbo, charging too much and not taking into account customer input very much, they try to make it look like they do, but the don't/ They don't care when you report some one, they either ban them regardless or just don't care.
Although i think it's getting better with the merge, loads more competitions, but kinda crap prizes. In years gone by i'd get excited when they would do competitions that would giveaway furni no one else would ever have. They nearly did it this time, with the world cup trophies. But then they released them for 6C :S
It seems more about the money now.