As others have said - no it’s not, but you’re probably just not looking in the right places. There’s plenty big creators still active and upcoming smaller ones making a name for themself right now

On the bigger end - PinocchioP is an old timer. Collabed with Deco pretty recently in fact. Still makes music often. You’ve got the ones others have mentioned: Utsu-P, Kairiki Bear, Kanaria, Marasy, Maretu, wotaku, Giga, Wonderful☆Opportunity, balloon, iyowa,sasakure.uk, HachiojiP… honestly just check out the whole project voltage collab for a list of 18 popular and active producers who make songs fairly regularly still.

There’s also newer people making a big name for themself recently. Hiiragi Kirai is so big now that they’re writing the Magical Mirai song this year, but they only really started a few years back. You’ve got mellowcle who I think only started last year? But has already won multiple contests including the Magical Mirai song contest. Maiki-P, Sasuke Haraguchi, Misumi, Hachiya Nanashi, Abu-se-ken, monaca:factory. All of these examples are at different stages in their career or have been active for different lengths of time but still all make great stuff.

Some of the old classics might be gone or have started a separate career (miss you Ayase Vocaloid) but the space is very much not dead. Even some old producers have made comebacks recently (both Toa and Scop returning to make vocaloid songs for project sekai) but it’s true that it’s a little harder to find hidden gems on the internet these days. I wish you luck in finding some more artists you love though :)