be optimistic: updates are getting rare because something big improvement is done behind the scene, and good work needs time (similarly to bad work)
I rather doubt this is the case, though I would hope it was. I have had a long history with 3DGS (even involved in the beta test a bit) and if there was little activity publicly, there usually was something going on in beta. There hasn't been. And even if there was something going on behind the scenes, it's bad business to ignore your customers and let them sort of fade away, don't you think? Even if they reveal a super-cool new engine and tools, who will be here to witness it? (Yes, I was exaggerating).
but don't forget to make price & feature comparison among engines, and what skills and other software knowledge & ownership are required to start. 3dgs seems to be not a bad choice at all, if you don't want to spend too much money...
As others have pointed out here, because of how outdated the tools are, you need to be a virtual expert to use GameStudio properly (creating your own import/export tools, etc). This being the case, there are many, many FREE engines out there with many more features that make GameStudio look quite outdated. And other engines are not very expensive these days. Compare the pro version of Unity to GameStudio. How about Torque? And what good is a price point (should GameStudio come out ahead) if the product actually is dying?
