Yeah, this project is still alive! We haven't worked on the game seriously for a couple of months now, since we have been working on some other small projects and a few other things have gotten in the way. But development on this game is going to start up again after we finish up our current project, which should be finshed in the next week.
We have put a little bit of time into the game here and there, but haven't made any major progress. I'll post up an animated screen shot of one of the recent things I worked on. It's a funny glitch combined with some placeholder art, but shows off one of the newer companions:
I'm glad you were interested enough in our game to ask about it!