It's not dead, just breathing very slowly. We just accepted the last batch of users to this program. We are not going to accept any more users after this, as we are deciding the fate of this program this spring based on the feedback we receive.
That's rather disappointing to hear considering F-Secure promised not to kill the original Little Flocker when they bought it and rebranded it as XFENCE. We've all been very patient waiting for our favorite and most powerful security tool to finally come out of beta despite the fact that we will probably have to buy it again. To hear that it's "fate" is now being decided does not bode well for us, and I personally would not trust F-Secure if the first product experience I have with them is as a beta user receiving broken promises.