Thats not really RP'ing at all then my lovely lady. If people just turn off their characters at whim, then those people really do suck as RP'ers. When you RP, you just become someone in the world of PS. And then, just like in the real world you cant really stop being you, in this realm you can't not be Illysia. Otherwise you are breaking the third wall. So frankly my dear, such people are being little n00blers. And of course you cant play with little n00blers. N00blers want everything to go their way and throw hissy fits at the slightest adversity. Thats not how pretend lives work nor how real life works.
Nevertheless, there is a less than ideal RP situation in game and saying "how it should be" doesn't change how it most certainly is. And again, whether they suck or not, they are at least attempting. The one who does not do cannot completely criticize the one who tries and fails.

Past merit only goes so far. You can't live off past RP glories forever, I know, I tried. Better to start anew with newbs than to complain about the old days and not RP because of newbs. Moreover, most "n00blers" are far less inclined to throw hissy fits when they don't get their way than oldbies and people who are good at RP. I know this from first hand experience. Many newbs just need someone to be patient and RP with the and help them learn.... like many of us did in the beginning. I still remember sitting around with Agara early on.

What do you think thrill is? It can be a lot of things. But let me put it this way: Everyone role-plays for something surely? What do you role-play for?
For many players, well... the ones that typically RP and run off other people, thrill is being an assassin/rogue/bad guy of some sort and being "bad". They get a kick out of "robbing people" just because the character is in their general vicinity. They don't care so much about story, or settings or other things. They more or less treat PS like a poor man's Grand Theft Auto.
For some players thrill is dueling. And they too only care about that.
Some people are better at RPing on a small scale but don't necessarily work things out very far. Some of these people also seek the excitement of "darker" side of society and run with it. But, most of those people fail to realize how much more effort it takes to effectively play a "bad" character than it does to play a good "character". Another unfortunate side affect is the notion that "good" characters are good two shoes and boring. There's no excitement in it for them so they dislike those kinds of characters. This points to the underlying problem of lack of imagination. A shoemaker can be an interesting character if well thought out and well played, but a Dark Archmage can be the flatest, most uninteresting character if all he has going for him as that he can "pwn"...
The flip side of the above character is the "goody two shoes" variant and they have the paladin counterpart to the the dark archmage. However, good intentions does not necessarily equal a good character. There still needs to be some thought.
Some people play the game to chat mostly. Mind you they do so in character but most of their time is spent just talking in one place. I believe their focus is not on exciting events as much as having characters with depth. Nowadays, having a character that has something to talk about is a pretty big feat in it's own right. Also, it should be noted that some events can lead to RP that they find exciting but it's not based solely on the actions of the character.
I RP to watch stories unfold, see what happens to characters, how they develop. I also rp because I like helping and doing things for others. I know the last one sounds a bit odd but nevertheless it's the truth. It's the reason I started running the stonehead and the reason I set it up the way I did. It is there for the purpose of serving the community and promoting RP so that everyone can enjoy it in a comfortable setting. Mind you, there is room for the upset or two as long as it is within reason. The whole purpose is so that everyone can RP together.
If there aren't enough players around or interested in role playing then I guess I have to agree that trying to play this game as an RPG is a bankrupt exercise. And I am sure that's what most oldbies are feeling sad about.
The problem is not whether people want to RP, the problem is whether people want to RP with the other people around them. And the answer is frequently no. This problem runs up and down the scale from newbie to oldbie. People have segregated too much and it reflects in either no RP or RP cliques.
I think there's something else we are missing here. And I still think that something is finding out what appeals to all players alike.
It's not one thing. The way to get everybody on board is to do some of everything. I listed above what different groups like, you just have to find a way to integrate it all, but that's the hard part. Not impossible though, just hard.