There are (way) more users on IRC than there were in 1998.
A lot more. Though in proportion to the number of people that have Internet access these days the market share enjoyed by IRC networks has nosedived considerably.
Six or seven years ago instant message software became popular and in more recent times, Spaces, MySpace, Twitter and Facebook took over. Google's now entering the fray. Me? I don't use any of the above and remain loyal to IRC, along with a few mates, we run a small and pretty much trouble-free network.
Over time, some of the larger IRC networks had trouble dealing with uncontrollable attacks from morons. Whilst most variations of IRC server software comes with tools to deal with attacks on a small scale it was never designed to defeat large scale attacks and probably never will be. Attacks large and small can be extremely disruptive and if it lasts long enough, people get tired of it and do something else.
Whether it be good or bad, websites provide people with something that is seldom given out on IRC - control, and all you need to gain access is a web browser, which you will already have on your computer when you buy it. Users control who they let into their little window on sites like Facebook. On IRC users have some control over their chatrooms but none of it is point and click and you need extra software (such as mIRC) unless the network provides webchat.
I think IRC would have done a lot better if it caught up with the times a bit and more people got along with others. I have lost count of the number of IRC networks I know of that have become fragmented or even closed down due to petty squabbles and personality clashes.
