The graphics may be dated, but, from my experience, the biggest hindrance for new players is the overarching play style that Everquest requires. It's not a quick pick-up type MMORPG in the vein of WoW, EQ2 where you can log on for short amounts of time and get stuff done. Like most games it is a time sink, but it's the mother of all time sinks. You can get far in the group game as a boxer or if you have a few friends, but to really enjoy most of the game you need to invest in a guild. This will open up raids, more groups, better fellowship, etc... Unlike other games, the guilds that actually will be worthwhile are not a dime-a-dozen. If you enter EQ alone, you'll have to work hard to find a guild that can offer what you're looking for, whether it's family style, group content, mid-tier raiding, or high end raiding. If you're lucky you can find one that offers a mix of those.
The focus of EQ these days is pretty much only 70/75+ content. There is no community for the lower levels other than random power levelers. This is also a huge roadblock for new people. If you come into this game not knowing anyone, you're pretty much stuck with whatever you can find to advance. There are plenty of fun things to do at the lower levels, but there isn't much opportunity to actually participate in a lot of it without help. I haven't experienced the lower end game in a long time, save for PLing alts and friends. I have no clue what it's truly like for someone that's just started.
From what I've read, there's pretty much no way to update the graphics without creating a brand new engine. This can't be done without a major financial boost. The amount of time it would take to update models, zones, etc... would take more focus and man-power than they currently have focusing on EQ. The way current developers avoid messing with a lot of the game's code shows that there isn't much of a chance that anything substantial will be done. It's most likely not due to them not wanting to update the game, but rather a financial decision SOE has made long ago. Don't quote me on that though

, pure speculation. It doesn't seem like EQ is anywhere near the top of the list for things to improve/maintain on a regular basis. I'm sure it's still a decent cash flow for SoE. With the inclusion of the marketplace, LoN they can still get people to pay for such an old game. However, the funds are most likely being used to fund other projects. Otherwise, we'd be seeing much more support and updates for EQ by now.
EQ2 and vanguard are the only other MMORPGs I’ve played outside EQ. What I like about EQ2 is the fact that you are less dependent on specific group make-ups to be productive. I played a necromancer and my brother a brigand, and we were able to do a lot of the group content very well. The trade skills in EQ2 are awesome. Unlike EQ, EQ2 trade sills are extremely useful. Being able to make your own spells, furniture, armor, weapons that may not be as great as the group, raid drops was awesome for the more casual, non-guilded players. I’d love to see EQ adopt that type of trade skill system. That’s probably the only major thing I could see EQ even possibly adopting though. I liked how EQ2 was much more quest based. They were great ways to xp, and to keep from just grinding for the sake of leveling up. The journey was much more rewarding than camping for armor and pulling mobs just to kill. The major part of EQ that keeps me coming back is the community of friends, guilds that are awesome. If it wasn’t for that, I’d most likely just solo/duo in EQ2. I’ve been playing since July of 01, and will most likely play till either the community completely falls apart or they run out of hamsters to run the server wheels