Did this thread move? Seems like a while since the last update.
It didn't move exactly, but a lot of the work being done on Keyhotee right now (including work I'm directly working on) is on the backend side: peer-to-peer code, web wallets, json-rpc interface, blockchain, etc, and the status for this work is being updated in the btishares xt status update thread rather than here.
On the Keyhotee GUI side, the main changes have been and/or in progress are addition of a webkit widget-based web browser (to support displaying our web wallets inside Keyhotee), work to integrate the bitshares_toolkit code into the Keyhotee code base, code to establish friend-based peer networks, and miscellaneous bug fixes. After that the other major planned change is to modify the way we send messages to multiple recipients for better network efficiency.