Just wait until makeb comes out trust me empire players will be satisfied.
I hope so.
But as for is the Empire losing? It's the ebb and flow of war.
When the war started, the Republic was NOT in a good place. Coruscant was still in pieces, with whole sectors on the verge of being abandoned or seceding outright. Separatist movements were erupting all over the galaxy, even on stalwart Republic worlds like Ord Mantel. Alderraan had withdrawn from the Republic, and fallen to a tyrant, who was a former Republic war hero
. The Republic was desperately focusing on Taris because they needed a victory, even if it was a 300 year late symbolic one.
The Empire, on the other hand, was consolidating power, playing games with the Republic, and trying to goad them back into a war they were unprepared for. They held Balmorra, they were courting the Hutts, things were going their way.
In the beginning, the Empire came out strong. Corellia fell (Well before the players get there). The Hutts stuck to their neutrality, but that was alright. Balmorra was further secured. Taris and all it's symbolism was crushed in the Republic's faces. And Empire-backed House Thul was starting to look good for the throne due to their superior military, and their acceptance of the burden of managing the Killiks.
But then the Republic came back strong. The Empire lost Balmorra, which was a huge blow. Alderaan leaned more towards the Organas. Corellia was lost. Their attempts to cut off the Republic from its allies failed.
But the Republic took hits too. Belsavis was a HUGE blow. A PR nightmare, the sudden release of some of the worst destructive elements the Republic had ever faced, all at once, and the Imperials getting their claws into a whole pile of Rakatta tech. The Republic lost it's only real safe Force-user storage facility.
Hoth, Voss and Ilum I think were indications of a stalemate. The initial power ploys had been exhausted, the Empire was on the defensive now, but the Republic was too shaky to push into Imperial territory (Still got Separatists, Hutts, Crime Syndicates etc to deal with, and they seem to see the Republic as a WAY better target than the Imps). Superweapons on both sides had been built, tested, blown up and/or countered, and now they're back to the drawing board to try again.