It's in maintenance mode, and still has a role.

However, the focus has moved to py4web [1] which has many of web2py's strengths (including the DAL), but with a more orthodox architecture at the cost of a little more complexity and a slightly steeper learning curve.

[1] https://py4web.com/

Stuck for a while in python 2.x world with its "always backward compatible" pledge... then it lost attention I guess. Also, questionable technical choices. Now py 3.5+ compatible, but no compelling reason to use it.