It's all relative.

There aren't a ton of MUDs out there that match CF in quality of RP period, but that isn't the point. It's the degree to which CF makes it difficult to be a player enjoying the game with other players compared to other MUDs. I don't think I've ever found a MUD that was "RP-enforced" that has zero restrictions on OOC activity, but CF is definitely on the ultra-conservative end of the spectrum compared to most modern MUDs/games, and regardless of what you or I think, that seems to be having an impact, as there are quite a few players, even those outside of Torak's group, who are voicing an opinion as such.

The fact that some players aren't happy with some policies doesn't mean CF is doing anything wrong. It's purely subjective and a matter of it's maintainers to take input from players, their direction for the game, and a bunch of other factors, put it in a blender, and make something good come out.