It's not "dead" But then they're victims of their own circumstance really. The Fun Pimps aren't a massive development company with huge financial resources so it's very much a case of it'll be done when it's done. That said, I think think they've been working on the Alpha 17 update for something ridiculous like two years now which is far too long.
This game sucks they should pay us to play :p
Signed in, £14.00 for me, no free to play
Each to their own