I just want to start by saying: I like the game! It's one of the first games I played, along with DMD.
I know there are problems with it, just like any game. Maybe too dark (depressing) for some? The characters faces have been injected with anesthesia, hence they have no expressions. The transit between some of the scenes are a bit odd, but Gumdrops was onto something...that's why he garnered the support he did.
The following is just conjecture on my part:
1. Patreon came crashing down on incest content.
2. His game is called "Dual Family". He can always try changing it to DF, but that didn't work for DMD.
3. As of now, there has been no content that breaks Patreon's TOS.
4. The massive influx of support was to get to the content that Patreon has forbidden.
5. I don't remember the exact number, but before he paused development (to get new hardware) his earnings were under $1k I think, he spiked at around 12k a month
So, put yourself in his shoes...
You're making a decent amount of money, perhaps enough to buy a new car, buy some new electronics, pay off a debt or two, hire a hooker to beat you with a cricket bat (insert what you would do here)... you get my point!
Do you risk it by putting out new content?...or do you wait it out, build your own site, release raunchy images to keep the hype going, and financially secure yourself.
Conclusion:
Yes, he's been working on his game, but he will not release it until he feels he's earned enough or the support dies off.
People celebrating that his earnings have dropped to $7k a month... so what? That's still a decent amount. Some developers work there asses off and can't reach that amount (It's not fair to them, but life is never fair.)
Personally, I think in the long run he'll burn too many bridges and lose trust, which is very hard to regain. This update, as massive as it's supposed to be, will disappoint a lot of people. He's probably put too much pressure on himself to deliver as well, which might be leading him to second guess himself and keep pumping out renders to reach "Magnum Opus" status.
But then again, what do I know? I'm just some dude on the internet