Installer is no longer included in DevTeam pwnage tools (most recent: redsn0w). Could it's death be any more official than that?
Icy and Installer 5 sure get hyped up and the dev's promise a lot, and although they wish to carry out with their promises their outlook is grim. Interface never satisfied the user. Graphics didn't either. Your average user wants Cydia/Installer for ONE reason and ONE REASON ONLY: To download apps. The Installer team appears to have forgotten about this.
Installer tries to be user-friendly. Cydia tries to be dev-friendly. Ultimately, dev-friendly wins because PEOPLE MAKE APPS FOR IT. Noone makes apps for Installer besides the Installer team. In 1.1.x, with all the repos I was registering several hundred, nearly a thousand packages (Mostly Summerboard themes) against Cydia's very few packages. In 2.x, it's the exact opposite.
The dev's behind Installer are great. They paved the way for us to get where we are now. But their skill is going to waste. They need to let go of lost causes, and start painting a brighter iFuture, as they have in the past.