I play poker in the card rooms around the Bay Area very regularly, and limit poker is absolutely popular at the card rooms that I go to, as well as in Vegas. To say that it is dead is completely untrue.
The other thing is that poker has an unexpected (at least to me) social aspect to it. The people who play against each other are largely friendly to each other, and they play against each other every day so playing 3-6 limit lets you spend more time at the tables than 1-2 or 3-5 No Limit, etc.