I don't think it's dead, but more like on hiatus or progressing very slowly due to most staff being busy with work. I think it's like a 3-years long project, but by then SMF 2.1 or 3.0 will probably be out or in open beta.
Also I like how shmibs managed to use a full color bg rather than 256 colors, yet it only takes twice more space. When I tried to save my original background in full color PNG format (no transparency) it took like 2 MB