FSX is still alive and kicking. There have been some developments, mostly from the Eagle Rotorcraft Simulations team.
The latest development is the Bell 206 which will bring a much needed update to the model (both internally and externally), new panel and gauges, new rotor blurred effects for the main and tail rotors as well as additional models: police, utility, crop sprayer and others.
Textures are also being kicked up a notch to full HD glory and the night lighting worked on. And, since this will also work on P3D (yes folks, it will), the team's also adding Real Light and True Glass. This should look amazing!
The flight dynamics are also to be upgraded (I would love to see it a bit more twitchy just like the France VFR Alouette III) so we might be into a nice treat from the team.
ERS says that this is quite a simple project so they should be able to release it until the end of the year. The 222 and 429 are still being worked on as well and users are waiting for it for some time. Nonetheless I do understand the need of the team to work on this simpler model to clear their minds and actually finish something.
Both the 222 and 429 are not easy helicopters to work on (if I'd have to guess I'd say especially the 429) so this might be a well-deserved side-project to help the team take a deep breath and go back to the more complex projects.
You can follow progress of this and other models at the Eagle Rotorcraft Simulations Facebook page.