The Indie Stone has released a statement explaining the direction that they are taking after this loss. It reminds me of Churchill in ww2. We will be seeing more information on update progress in the future. Things are not as dire as they originally assumed, but the next update will be limited to NPC stuff, saving and new map stuff will be in later updates. Long live project zomboid!
http://projectzomboid.com/blog/index.php/2011/10/i-miss-the-days-when-we-didnt-take-a-hammer-to-bed/