Squeak is alive and very healthy! Various groups are now pushing Squeak in different directions. For example, Croquet is quite exciting, and SqueakLand is moving forward. There are also groups who are trying to clean up Squeak as it stands, such as The Harvesters. The Coordinators are working on coordinating the efforts of various teams.
The 3.10 release is being developed from January to June of 2007.
Further in the future, there will be a Version 4 release.