There hasn't been any sign of activity for quite some time, although the Chinese site occasionally has some updates every few months.
The last vid, with the catapults in the siege, was just in February.
Don't know how exciting or extended the siege weaponry will be, but a lot of work seems to be going into the dungeon. Also, not sure if it'll offer random generation like Diablo (That'd be too awesome), but at the very least it looks extremely promising for 1 playthrough.
And as in Chapter 1 you could play both evil or good, I'm sure Chapter 2 will offer at least 2 different storylines as well.
And yes, for those who haven't done it yet, evil playthrough is possible and noticeably different, although the story caps soon after the choice.