Junction Point Studios is alive...

as of yesterday it looks like they are hiring a bunch of people so maybe a game is more than just a pipedream perhaps? also if you click on the games tab you will see a singular piece of concept art. its something i suppose
http://www.junctionpoint.com/

edit: theres 2 other concept arts on other tabs as well.

edit: also i'm not sure if its news but harvey smith, appears to be working at or with arkane studios on a first person rpg--that's some good news. also in his blog he writes about a conversation with richard garriot about "what would ulitma iv look like today"
http://www.witchboy.net/2009/01/31/last-night-in-austin-6/