Not only is it not dead it’s under HEAVY active development and has been for quite some time now.

They seem particularly focused on the Linux compatibility layer (starnix) as far as I can tell.

I’d say they are most likely going to end up becoming the thing that Android sits on top of. There is already public indications of some variant of it called “microfuchsia” coming to Android. I wouldn’t be surprised to hear that this is all part of the same launch that they are working towards here.