My assumption is yes, its dead.
So why? Unfortunately the brass tacks have never been discussed but there was a mention of some technical setback...according to the devs something not their fault but an underlying limitation with some aspect of Azure. I would love more detail of course.
As this is microsoft funded I don't think it can be discussed too much, but what I would like is a post mortem discussing the outcomes. That would be very useful. As I have attempted a similar style of project I would like to know why/if/how it failed.