I have to ask how does this apply to CF, in terms of fixing the problem of waning playerbase.

This post does an excellent explanation on how CF and the MUD genre has gotten into the bind it is today, much like how other genres that have bit the dust, but once again it does nothing except say we need innovation to keep the MUD genre alive. And quite frankly to keep any thing in vogue, it needs constant innovation otherwise it fades to black.