For me i don't really care about the xp reduction because i rather loose xp and be able to rp. Then sit around doing nothing waiting for chances to rp. I just hit level 14 and i don't really have plans for leaving Barovia on a more permanent basis. I will venture outside of Barovia with parties to run stuff, but as it is now Vallaki specifically has the highest character turn over and chances for RP. Which is why im playing after all, id likely be willing to venture to more places for longer periods of time if more people used the @lfrp. But when ever im on and check it, its nearly only ever people listed in the vallaki area. There have been times iv seen a few upper levels use it in other places, but the general consensus seems to be very few upper levels use the function outside of barovia. So i usually have to choose between do i stay where i know i have a 95% chance of meeting others to rp with. Or do i wander around the other domains, spending money on travel and spending time running between all these destinations to find a slim chance of rp.
Like many, my choice is nearly always going to where iv a absolute certainty of where players are.