Contrary to what you might think, K2 isn't quite dead, as evidenced by the changelog. In fact, it's worth subscribing to that feed, to keep up with code-changes and compatibility issues, all of which will be listed in there.
WordPress 2.2 is coming up, and I figure we might do a release for that (which requires some twiddlin' with the sidebar modules, due to WP changes, so that'll be fun).
Until then: We live.