What has happened is the introduction of many city zones. Instead of one large area where everyone can do business (like PoK in EQ1) there are now many smaller "suburbs".
So even though your city may have only 10, there may be 20 in NQ, 10 in WIllow Wood, 6 in QH, etc.
Folks are also spread out across many zones. Most of the folks that started from launch are now level 45+ and are in those higher zones.
With the addition of menders and mail boxes at various locations, there is little need to return to your home town for much at all.
You could check the population at the time you're on by doing a /who all (class) and add up the numbers. You may find there are more than you think. :)