not even a month ago , black popped out of his hidey-hole to say "it's still in production!" and that another release was imminent, i believe. which is cool. but still, don't hold your breath for anytime soon (it's been a good 12 months since the last release)
hugo, which is a Windows emu for PC-Engine, supports ISO files (which are generally at least 1MB+, if memory serves) - that is the non-music data for the CD games. I guess you could argue that technically, it's feasible that they could be played through an appropriate emu on the GP32 but.. I don't think we'll see it happening given the state of things. it's possible though, who's to say!!