I've noticed Infamous Adventures has been pretty tightlipped about Kingdom of Sorrow too... They recently cancelled production on King's Quest III Gold Edition over legal and monetary reasons...
Infact when they made the announcement they stated;
The world, though, has changed so much now that we don't really need to keep these franchises alive anymore. All the old series are available once again for sale through various websites such as Good Old Games, and other professional outfits are making games again. And with the advent of technology such as tablets, and online console stores, these franchises are worth something again... The King's Quest rights have been licensed out for new games...
The other harsher truth is that we have flown under the radar for a long time, in a legal gray area with these fan remakes. Even though they are entirely not-for-profit, and are 100% original works (we didn't use anything from the original games in our remakes) the games themselves are copyrighted. We have only ever treated these games with respect and didn't do anything to degrade the value of the titles. But bottom line, if the owners of the copyrights wanted to, they are within their rights to issue cease and desist notices. With these franchises actually profitable (and the titles for sale again) it's not worth our effort to continue to make these without monetary return.
The fact is that problem is, that not only would "legal issues" potentially affect a KQ remake, it would be more likely to affect a brand new 'original' (ok semi-original) game in the series by a fan development team. Certainly, they aren't going to get 'monetary' return on Kingdom of Sorrow either from a fan development standpoint. If the same standards are applied to Kingdom of Sorrow, my guess its possibly cancelled as well. They certainly haven't given any updates on the game since like 2011.
Only other possiblity I could see is somehow IA is making some kind of deal with Activision to license King's Quest, and sell Kingdom of Sorrow for profit. But I think that outcome is probably very unlikely.
We do know apparently, that most of the teams at Infamous Adventures are switching over to develop Quest for Infamy which will be an original IP and sold for profit.