It's been placed on pause but certainly not abandoned! The problem was that with CyberRogue we felt we were pushing out in lots of different directions and it was just becoming a bit of a mess. The combat wasn't as good as we needed it to be (it felt too much of a shootery/hack and slash sort of thing) and while the 'simulation' bits were going well, it was basically shoehorned onto a standard roguelike framework/engine.
So we're currently working on a much more contained and straight forward roguelike (which still has a cyberpunk/futuristic theme to it) so that we can really get the combat down well and get a bit more general experience. We'll then be moving on to ripping out the bits that we need from CyberRogue and making a much firmer base for a true simulation.
As for the chatbot experiences, its a tricky one. On the one hand, being able to talk to any NPCs (at least to a point) was great. You could go into a bar and just talk (if you kept within the boundaries), this is fun, but it's almost like the closer you get to 'conversation' the worse it is not being able to actually talk naturally. Secondly, there was the problem of just not being able to have individual memories for every single NPC (as we wanted hundreds). This meant that you always started a conversation as if you were strangers, which was jarring. Lastly, the general problem of having to work out all the things that a player might say is tricky. That last one isn't as bad as it seems though, as it's much simpler in the boundaries of a game world than if you were trying to do a general chatbot.
All in all, expect more to come but it will be a bit slow. To tide you over, here's a picture of a gun from the new game: