Stencyl is still being developed. Their focus at the moment is working out bugs before adding new functions, and with the announcement that adobe will pull the plug on Flash, they are working hard at implementing a stable html5 export function.
Stencyl 3.5 is our focus, and as we've said before, Stencyl is still actively in development. As others have already said, 3.5 folds in a huge underlying technology upgrade that brings in proper HTML5 support and modernizes the graphics pipeline for mobile and desktop.
Unfortunately, as with any major "pipes" upgrade, it comes with issues that have proven to be a bit trickier to work on than we anticipated. We plan to put 3.5 out this fall.
(I'll note that I've cleaned out a couple messages that were inappropriate to this topic, and I ask that that info not be shared or mentioned again, as it's strictly confidential.)