1. Yes. I've brought a couple here. They're still really new and getting the hang of things, but they have a desire to play, so I guess that counts.
2. See 1. I'd bet that the biggest draw is word of mouth. That's how I found out, and I know for sure that that's how the person who told me and the person who told them found out.
3. CF is _hard_. CF is PK-oriented. CF is RP-oriented. I don't understand the MMORPG mentality myself. I played WoW for a couple months and hated it, but it seems like people want something with no risk, that requires no work, and just want to generally horde shinies I guess. Other MUDs are more conducive to that kind of mentality than CF.