I don't think of it as a popularity CONTEST, but I am definitely affected by whether a story is a hit or a flop. I had my first straight-up flop recently (in that reviewers were explicit about not liking it, and the reasons why), which has definitely made me question some of my assumptions about what readers want to see. Because if I didn't care about what readers thought, I wouldn't post my stories online in the first place (or else I'd post them on a site that has no mechanism to allow readers to respond).
I guess I don't see it that way. I've had readers that have been quite vocal about what they didn't like about some of my stories but it didn't change the course of the story I wrote. Hell I got a couple of threats on another site when I started posting a sequel to a story some people sort of liked when it went in a direction they didn't like. Though I do admit that some reader feedback on another story did help to make it better in that I continued for a couple extra chapters to make the ending more complete but it didn't change the story I wanted to write.
If I let the readers dictate what I wrote, all my stories would have one big guy, the dominant alpha male (most likely a werewolf because that's what readers want in the genre I write) and one smaller effeminate guy that the big guy wants but doesn't want him but he gets anyway because of the 'mate bond'. *shudders at the thought of attempting to write that story* I couldn't write a supernatural fic to save my life.
I just think when writers write to appease the readers, they can lose sight of what got them excited about writing the story in the first place. If I looked at hit counts, rates and reviews, I'd have quit posting after my first two stories (I'll smack anyone that tells me I should have taken the hint. ) and then FFH would never have seen the light of day on this site.
Anyway, my advice is to just keep writing what you're compelled to write, post it and even if it's not what you think is a major success (What constitutes success on this site, 1k hits, 10k hits? I've no idea.) if you're happy with what you wrote then you did what you set out to do.
CL