I just saw this thread (yes, the forum has slowed down so much that I no longer read it every day!) and want to add my thoughts: I agree with the person above who said that part of the problem is KS levels being lost in a sea of levels (yes, I'm talking about "the community" being in large part the activity generated by people making and playing KS levels). No offense to the many people who have made levels, but let's be honest that too many people made rushed and careless levels and these made things quite cluttered. I always felt like I had no way of knowing what good levels people might be making because I didn't want to spend the time searching through a vast sea of weak levels in order to find the good ones--so for all I knew there were still good ones coming out but I couldn't find them, and I just gave up.
I was really looking forward to Knyttlevels.com being updated with a rating system so that finally there would be a system for the quality levels to rise above the careless levels, and I thought there might be a resurgence of KS activity as a result, because seeing other people's good levels that might have been overlooked before might also inspire people to make more levels of that quality. Alas, there hasn't been much word when Knyttlevels.com will be ready, if ever, and I worry that by the time it is ready it will be too late because the decline of activity will have caused people to move on.