I can tell you that from the database end EQEmu is far from dying. I spend time everyday working on PEQ, and we're getting closer to a release.
As for the coding end, it's slowed a bit because fewer people are working on it, but I can tell you KLS is indeed still active and there has been updates since the downloads on the main page. Not minor updates either, hell one is a patch that pretty much fixes Berserkers. Not sure why the main page updater isn't working, but the code is publically available via CVS.
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