Feb 1st 2012 1:20PM The guild I'm in went through the exact same thing. We hit a stumbling block on heroic Staghelm and that was all she wrote. Half the team split off and formed their own 10M guild and then we lost even more people in the weeks after as they (understandably) just didn't have the will to try to rebuild.
Regardless of whether you prefer the 10 or 25 person raiding size, the steady drop in non-LFR 25 participation makes it look like that format is slowly dying out.
Honestly, I have no idea what could be done to get people back into it. Bribery with better gear will only, at best, bring in the wrong kind of people. An interesting question (for me, at least) is whether or not Blizz feels they should do anything. Most of the 25 person format difficulties lie in the social aspects of organizing and running them not in the game mechanics.
Dec 29th 2011 2:34PM please please please...
Dec 23rd 2011 12:16PM please please please
Dec 22nd 2011 9:03PM fish me!
Dec 20th 2011 2:40PM must smash trains
Dec 19th 2011 5:02PM loot!
Dec 19th 2011 4:48PM dice don't fail me now
Dec 19th 2011 3:54PM pet-tastic
Dec 19th 2011 3:46PM so cool!
Dec 19th 2011 3:35PM I like presents