It's still used I think. It seems to go through waves of varying activity and interest.
I'm still actively taking care of it, but yeah the spam is a big problem. There are a few measures in place to combat it, but the spambots still seem to get through sometimes.
One of my big goals is to integrate IC user's accounts into the wiki. So logged-in users can all edit things as they wish, but anonymous users (and spambots) would have to have their edits/changes reviewed. I plan to give review capabilities to any logged in user. Not only should this fight the spam but it will mean IC players can use the wiki and have their changes attributed to them, without having to actually log in.
It's a nice plan I think, but it's just a matter of prioritizing it with some other things I'm working on.
As far as the purpose, it's analogous to wikipedia. Anybody/everybody should feel free to write anything/everything. For example, if that "Primo" page is deemed unfit or too silly/meaningless, anybody should feel free to edit it to include information about his known in-game information, his modship, or anything really. The idea is that we're all free to add as much information about everything as we'd like. So it's a communal information repository about things as significant as the depature of MasterMike to things as small as a particular player's real name.
Got a few bucks? The Imperial Tip Jar is accepting contributions!