Do people still play Freelancer 2 online? If so, how many are on during peak hours?

I can't say for sure as I've not re-installed the game to look, but I can only immagine that PXO (Volition's/Parralax's online multiplayer service and master server) are down and no longer functioning. If that is the case, you won't be able to play online and get medals and ranks, etc. If you want to do multiplayer you'll probably have to do a lan game with friends. If you can't do a lan game in the same room, use Hamachi, it is a nice program that lets you play a "lan" game over the internet. If none of your friends play FS 1/2, you can always find people on here and add them as a friend on Xfire or something so that you can all hook up and play. Just my thoughts :)
You can get Hamachi here: https://secure.logmein.com/products/hamachi/download.asp