Of course, it is still going. Only we at openSistemas need to pay salaries ;-) We have a big amount of (paid) work now, so we have few time for Gentoo For Zaurus.
I hope to have some time soon to release the new version and to announce the public subversion repository.
In the meaning time, everyone can work on the project. The wiki on gentooforzaurus.opensistemas.com is public, so everyone can write there. We are open to new developers.
The main goals of the project are on the wiki, so everybody can change them ;-)
About Stallman, hmmmm, he is too aggresive for me. I tend to be more moderated.