I wouldn't call the project officially dead, just in indefinite hibernation. I think the biggest problem is that by the time its released--IF it is released, or if eventually Zion and the guys decided to just put out whatever they have done at this point--it will become irrelevant. Projects like Paulisdead's Vintage Edit seem to be making most of X0 unnecessary.

What I do think is beneficial, however, is the OOT shots corrected with the Black Magic process that cannot be drawn out of the HD SE souces. For instance, shots of the starfields, shots where some detail has been lost in the crushed blacks, shots that were deleted from the SE like the original Mos Eisley entrance. Currently, our efforts to integrate the existing Laserdisk footage into the clean-up/O-neg sourced SE have been a little lacking--see OCP's Classic Edition, and the upcoming Vintage Edit is having similar problems; Adywan's Revisited resolved some problems through meticulous compositing, but it avoided some of the biggest OOT shots. The biggest contribution X0 can make is provided us with the elements to finally rescue these OOT-exclusive shots, and thats why I want to see it released, or at the very least concentrate on just these elements. X0 is sort of unnecessary now, color-correcting the HD SE is a much better option for about 90% of the film, but X0's gift could be providing some working elements to better fill in that missing 10%.