No, its totaly not dead at all. This is more than normal active

[YinYin]

Is this community dead?

ummm, no motivation=dead

No. Your definition of dead is wrong. Go and have a look for Little Fighter 4 World or Robotical World. Those are dead.
As long as MH-Razen is still paying real money to keep this website and community running you better not dare call it dead again, even if only I am left posting a project or release once a year.

people not being active, they just act as they are active?

What the heck is the difference between being active and acting active for you? I don't think there is any.

where is the progress.

Where is your progress? Don't put that kind of blame on the whole community. You can only put that kind of blame on yourself. You've had such high quality character designs and animations recently. What's up with those? Are you not managing to finish the full sprite sheets? Are you not able to cope with creating satisfying data? Go ahead and post betas if you have anything and people who like it will sure offer help if you need any.
We might even be able to motivate and inspire you with feedback and suggestions if that is your only issue here.

people might just checking in, but from those 58 people, who actualy posting?

Well I am, you are, everyone in this thread is + everyone in the other recent threads. I will go and count them for you (just hottest threads of the past week -forum games) because you are being all too subjective:
15 active users in the Colosis thread
18 in the Bright thread
4 in simple things
8 in this one
11 in what makes a good character
6 in Onis DCing questions
13 in the lfe mod thread

That's an average of 10 different users per active thread this week. That's roughly 20% active users of the ones that were online for the past 24 h (that 58).
And these are even all in very different areas: An already running one man project, a very well working character release (with lots of custom face pictures from the community), an AI thread, a theoretical game design thread and a data changing thread. There is even gads flash sprite thread that just wasn't on the list due to forum games.
It's not enough for you? What about quality over quantity? Better get more involved yourself and enjoy what you got instead of complaining that it's not enough.

according to me, lfe is almost dead.

We've seen much worse droughts than this. And I agree with RtXaS: the current activity is actually way above average.

post something like lfe mod, then we need to grab people from corners and some have auto against it.

Maybe you got me wrong: I am not against it. I'm just not organizing or starting it because I know I cannot handle it and am not very passionate about it. If you are, start it! Nobody is stopping you.