Illy IS the "island" for GM Stormcrow and GM ThunderCat. With the amount of time and funding they've poured into Illy, the could easily be living on that island right now. I think that speaks for itself. As you get to know them better (not that I claim to know them well), you will see that, although there are occasional headaches, they are having a blast making the game and are quite nearly as passionate as some of us rabid fans.
I think they welcome the concerns people will post here.
I am not all that technically educated, but I think that a lot of effort in the past few months has been to address "growing pains" in the scalability of the game. This includes the transition to the new server, some changes in the way the chat system works (that are invisible to the user with the exception of having less lag) and some other significant changes to the architecture of the game that makes it work for a LOT more concurrent users than there were at this time last year.
I think you missed the episode with the Beating Heart of Corruption in your list of events or changes. I think this represents a significant step forward in coding, since the system is now responding individually to each player by sending particular types and numbers of units when we "poked" it. Seems likely to me that this is another step toward faction AI.
I've only been playing for ten months since a bit after UI2 was introduced, and I don't believe I've experienced a period in which new content releases were more or less frequent. The major changes I've seen since joining Illy were the (new) new map release last July, introduction of Exodus in September, release of the tier 2 buildings, the undead tournament and "roving" NPCs in December/January and the recent action at the HOC.
Honestly, I'm reasonably satisfied with the rate at which changes have been introduced lately. It seems like there was a LONG "dry spell" last year prior to Exodus being released but that things have picked up since then. But my gaming style tends to be laid back and slow-paced, and I fully empathize with those who wish stuff would happen a bit faster. I also have not anywhere near maxed my cities, so there's still lots to do for me on that end, which is not true for people with more mature accounts.
I also think that periods in between major content releases allow time for interesting developments in the politics/diplomacy side of the game, which is another of the parts that interests me.