Is Jormungand still in developement?
Jormungand development is currently dormant. The subversion repository has not been updated since February 2006. As for whether NeoTA plans to continue development in the future, we best let him speak for himself:
NeoTA : Hello :) I still intend to make some sort of editing environment, most likely in the form of a GIMP plugin[1]. The rate of changes to GAME intimidates me; depending on how this library structuring exercise goes, that may not matter, as I'll be able to have a library for editing, a library for running, and a library for shared stuff (like IO). The new absolute import support is important for this, as I have written tons of libraries which often interdepend.
It would be good to establish some unit tests for OHRRPGCE, though -- it's much harder to tell if you broke a feature when your ability to test that feature is haphazard( I WANT SCRIPTING UNIT TESTS! ). If the library arrangement (in progress) works out, I would make some unit tests written that maybe could be ported to the main OHRRPGCE source tree.
In short: The concept, yes. How that concept is implemented, no. Any new version of JMG would be like a shell over the actual libraries providing the engine, so it would be a quite modest project. Of the libraries, the IO engine and editing engine will surely continue (are currently, actually). Game engine, maybe not (scripting is consistently dogged and bugged)
[1] - Because of numerous graphic manipulation niceties.
NeoTA -- Thu Jan 17, 2008: No. See this explanation - In short I no longer have time for it.
Since the code is released under the GPL, anyone who wants to can choose to assist development.