Part of the reason that we made this community is because we actually enjoy developing games for W3D regardless of their appeal to the wider gaming community. Although, I am of the opinion that with a proper distribution method (the launcher) and the proper PR steps taken, a lot of people would actually be willing to play.
FPS games like Guncraft and Roblox have terrible graphics, but are still popular. I also took a look at another game called 7 Days to Die recently which also has sub-par graphics when you compare it to something like Reborn. The fact of the matter is, gameplay is way more important than graphics ever will be. We're working on more high poly assets for AR currently which seems to be turning out well.
I also think that we can find more developers if we actually produce better tutorials on map-making, rigging and generally modding the engine. W3D won't be dead for a long while.