Just because it was financially responsible for Engine Yard to cut back from 6 to 2 fulltime developers does not mean that Rubinius is dead. Rubinius has as and always will be a community project.
Furthermore, the author states "But the problem is that [ruby is] essentially stagnant." Because of Rubinius, Ruby finally as a proper spec. This means we will see an "arms race" as he calls it, and it's because of Rubinius. PLUS, 4 implementations under active development (Rubinius, 1.9, MacRuby, JRuby) hardly seems stagnant to me.
Bottom line: this is FUD.