FD addressed the lack of galnet updates by saying those resources are now focused on New Era.
In other words, rather than adding more resources to keep galnet updated and delivering New Era or slowing down their contribution to New Era, they moved them entirely over to it.
This leads to the issue of course of no updates for Galnet.
FD obviously decided it would be worth it in the long run, probably by weighing up the cost of hiring more writing staff that would later on mean they have too many and having to do somehting with them (UK employment laws are tricky and hiring zero hour contract people isn't going to get you suitable people most of the time, while contractors are expensive).
As for dead, well, the long wait for updates will lead some to presume so, but the servers are still on and FD have repeatedly said how they are hard at work on New Era, so FD certainly don't think its dead.
So the only people who think ED is dead is those who have decided for themselves it is dead.
Assuming New Era is half-decent, they might rethink their opinion... or not. There are some people who have been saying the game is dead for the last 5 years. If New Era is a steaming pile of poo and poorly recieved, then maybe FD will reconsider the long term viability of the game and decide its no longer worth investing in, in which case, i presume it would go into maintaince mode... not dead, just no longer getting updates, until its no longer worth keeping the servers on. But that could take years.