Theryan's Dungeon Romper is not dead, even though you haven't really heard anything for a long, long time. I've been making extremely sporadic and inconsistent progress on it. I've at least started 2 new overworld areas, level 3, and a mini dungeon. Level 3 has actually been mostly mapped out on paper, I just haven't had time to translate that to ZQuest yet. Since it's been so long, I'll give you some "I'm-too-lazy-to-open-ZC-screenshots"
Rainy Fields n such
Jungle wow omg where's Tarzan?
Random room in level 3
Don't expect any new demo or anything soon. I'll try to keep you posted with my progress, as slow as it may be.