My understanding of the status...
LFS development is still going on, at their pace.
In the past whenever Scawen answered someones question, then more questions would be fired back. If he answered them, more would follow - squared. If he didn't answer within 20 minutes, people got shirty!
So I understand why there is no communication from the devs until they have something to announce. They haven't announced the project is dead, so I assume it's continuing.
PS. we paid £12 or £24 for what the content was at the time. Nothing further was guaranteed, they are not our slaves.