Completely anecdotally, but my personal experience over the past ~2.5 years of using Emacs has been the opposite of a dwindling community. Releases are frequent, often containing exciting new features; the community maintains many great packages, with new ones get released frequently; and I see more Emacs discussions online than I did when I started using Emacs, many of which involve new users. Emacs has a brutal learning curve, awful defaults and ancient bones, so will always appeal to a smaller number of people than VSCode or (Neo)Vim. However, for those willing to learn the arcane art, it can wield immense power.