In keeping with the thread I started the other day on a separate title, after a rather extended drought of information, there appears to have been some news on CAP2 front. Ed Scio posted a changelog for the most recent update and it appears that work is still continuing, albeit slowly as this seems to be a one-man show.
The hi-res textures of the Harrier itself are pretty impressive, honestly. The other updates look like just more work on the ‘world’ aspect of the game. However, he does indicate that work is ongoing for the AI and the weapons.