Don't worry the game isn't dead, I've been working on an update that will fix most issues with the current version like bug fixing and also i've added a run button when no effect is equipped. I will release this update before the next Dream Diary Jam.
But the real content update will be made during the Dream Diary Jam 8 we currently have 18 new worlds planned for the jam and at least 5 new effects.
Can't work on it before the beginning of the jam tho :/
Also, like in Dream Diary Jam 7 my friends will be making some of the dream worlds and compose music for them.