A bit of both; the blog is a tiny bit more up to date than the website.
At the moment, I'm working on porting NetSurf to run natively so that it will be a reasonably usable system, but that's in the very early stages (as in, I've done roughly three out of ninety functions). I can take the basic window behaviour from the RO specific code, but I don't have any Toolbox functionality written, or any in depth knowledge of how it works, so it will probably look pretty ugly in its first incarnation. The NetSurf developers seem to have made a nice job of abstraction, though, so it may not take too long.
The system as a whole now uses DHCP to get onto the network, detects block devices (hard discs and mass storage devices) and allows you to browse them (read only), can play movies (not scaled or anything clever, though), in about 21MB (for the user-only parts). It's generated from a set of scripts and a load of tarballs, based on the Linux From Scratch system and, with a little more work, should be able to take the form of a Live CDROM that can be used to generate copies of itself.
Nothing has happened with the GTK port for a long time, though, because it looks like it may be more trouble than it's worth.