Rotondo had an accident that led to his hands hurting real bad and basically he's still in recovery. He's said so himself he can go at most 1 hour on a keyboard before his hands start to hurt. Progress on the Forgettable Dungeon has been slowed down by a lot but it's not exactly dead because of it.
Update from the Kickstarter on March 19th:
https://www.kickstarter.com/projects/rotondo/forgettabledungeon/posts/1835912