I've visited a few Palace servers that still have dolls -- but we are talking about Nobody's Home, or The Campus Palaces. They used to be frequently visited, but are dead now.
I've been contemplating making a Palace again - but I don't know. The one I made last year wasn't visited by many. I may try to make a Worlize server. Worlize is like Palace just in your browser. Www.worlize.com