Did you stop working on this? I remember really enjoying the demo.
Yes, we're currently working on the dungeon game. There were a number of issues (actual 3D physics are a pain) as well as a lack of direction for what the "full game" should contain, and a number of other factors. Also, a certain game came out around the time that was doing a bunch of things we wanted to do but streamlined and, you know, already completed.
For now it's shelved, but maybe we'll make something out of it in the future. I doubt it though, as it would need major refactoring and we have a bunch of other more attractive ideas in mind.