terraria developers in 2011: here is 1.1, one of the last updates. we will work on other projects now
terraria developers in 2013: ah you know what, have 1.2. you guys deserve it
terraria developers in 2015: whoops, forgot our keys. anyways have 1.3, truly the last one
terraria developers now: more stuff coming soon!
starbound developers: lol horse heads and alpaca suits!!!!!!!
after 1.3 they didn't actually say it was the last update ever
they said it was the last update Red was going to work on and the last one to have quite as large of a scale, but there would probably be updates in the future
probably just small improvements (like minecart systems) and the announced wire thing, maybe a boss or two
nothing too huge
This is while Red's gone and working on... Terraria 2? Or was it Otherworld? I don't recall which project Redigit said he was going to do instead of Terraria once 1.3 dropped.
Really the biggest problems with Starbound are the failure to deliver on promises, the agonizingly slow development time, and the apparent lack of priorities which has left the game in a state of unpolished noncompletion since the Kickstarter came out.
It was Otherworld, according to the wiki.