This is a CCP myth perpetuated to justify canning it, pushing the blame onto the players.
You can see the enthusiasm for it is there, in this thread, in the two other threads about it so far this month, in all the other threads, and the multiple times (often daily) it comes up in Rookie Help chat. Just yesterday we were explaining to Rookies that they can’t do that anymore - but why? They ask, as usual.
I used it. Multiple other people cosntantly mention using it / lamenting its absence / wanting it back. People made YouTube tribute videos about it and one site has even recreated the look complete with functional jukebox.
EVE Online: A Tribute to Captain’s Quarters
The problem is, as things currently stand with so many other more important issues that CCP are already struggling to balance / fix / take in the right direction, the last thing people are going to want to see is team time and resources being focused on walking in stations. At this point in time there would be riots. Just like last time.
Regardless, I will never believe the ’ feature was virtually never used by anyone’ line of excuse.