Can't say I am surprised, I saw this coming since 2006 or 07, I forgot, my recollection of the events in chronological order is somewhat hazy but between the weeks, then months, then years without a Fate Of Atlantis II discussion of any kind on their chatroom, the disappearance of most of the team members from said chatroom, the announcement that the whole script was rewritten from scratch (again) and that some assets had thus become useless, it became clearer to me that this project wasn't going to be completed anytime soon, neither in a distant future.
That project I mourned a long time ago.
Now, news about LucasFan's Raiders Of The Lost Ark is something I'd be very interested to hear about as I still believe he and his crew are working on it somewhere.