The project remains active. (Commits to the parrot repo.) There were discussion and commits on #parrot today. These were mostly about an idea timotimo (a #perl6er) had that he thought could significantly improve Parrot startup performance. The code changes that would be necessary turned out to be too hard and inappropriate. Benabik committed some changes that didn't really do what timotimo was suggesting and sadly noted that "My list of "how would I change parrot given my current knowledge" ends up looking extremely similar to MoarVM. :-/".
I'm pretty sure there's at least one GSOC student set to work on some Parrot tech this summer.