Yep, played the updated demo last night. The graphics are generally better, even more so than Fate of Atlantis. There's also a secret Easter Egg involving a ring and a date.
Hopefully this promising project will be out this year.
I've just accidentally came upon this interview I forgot about with FoA's project leader from March 2010. There are some (2) cool backgrounds from the unfinished game in it, as well as plenty of info about the man: