From what I can tell they are basically an OEM now, they make software which others market under their own names. I talked with Aaron just last week and they are alive and well. If you look at the svn repo I created you will see hundreds of commits brought over from the Pluto source. By donating these pieces of code it lets vendors know that if they want something similar to LMCE, but maybe with more polish or a different PVR component, they can go to Pluto and have them whip something up for them and take care of all the licensing. But part of the job of the OEM is to stay behind the scenes and let someone else take all the credit in public.
I'm more concerned about where Paul is.