Just giving you a quick update, no I'm not dead, and no the game hasn't been cancelled, restarted, or any variation of "NOT GOING TO BE FINISHED". I'm still making progress, and working towards a demo.
I've been considering looking for a CG artist to help speed things along near the end of development. (CGs are what I generally do last). So if anybody is interested in doing hentai CGs for the game (and is a better artist than myself), let me know and send me an email with some examples of your work. From there we can decide on prices.
Otherwise, I'll probably hit up some art forums or communities. Newgrounds is probably a safe bet, given the amount of adult content there.