Here's some of what has happened in the last few months:

Already done:
Chrome wallet: https://chrome.google.com/webstore/detail/bitbrowser-auroracoin-wal/odcmcehfddfnnnbaifjhkikddagchieg?hl=en-GB
New forum: http://auroraspjall.is/
Q&A site with Auroracoin bounties: https://www.spurt.is/
Insight API ported to Auroracoin: http://insight.auroracoin.io/
Twitter tipbot: http://auroratip.auroracoin.io/#/

Under development:
Auroracoin foundation in Iceland
Skiptum.is localbitcoins-style exchange
tipbot for bland.is and phpBB forum software
Icelandic krona to Auroracoin exchange

So to answer your question, not dead yet.