I'm not sure what will happen, but here's what I think should be done:
This version of Blockland should be set aside, since it's already so outdated because of Torque's engine. With that being said, I believe that this should be free, and a completely new Blockland should be worked on (and that would be for purchase of course). If Badspot were to do this, then I think he should name it something else rather than Blockland 2 though.
Honestly, Blockland has so much potential and I could see it becoming a #1 indie hit. There are just a few drawbacks:
-It lacks default tools
-The game looks too much like a game from 2006 would still, even with shaders because of textures and meshes
The way Badspot sees it is that the game is finished and no longer needs developing, yes from time to time it may require patching but this stuffty community deserves nothing, and I completely agree with him.
I can't speak for him, but I think he is just bored of developing a game that he is no longer interested in, and I highly doubt he'd ever release a Blockland 2.
These are my own opinions and views of what I think Badspot thinks. I've gathered this view from posts he's made on the forums in the recent months and they might be different to what he actually thinks.
But I think it is nice to get different peoples opinions in the matter.
If the community consists of paid users (like here), then the mentality of your customers should be regardless. It's like when you run a charity, and you have the nastiest donors: you don't stop the charity because the donors are jerks. They are donating to your charity. You don't stop the charity because the donors aren't nice to you.