No offense, but it's apparent you're clueless arlyn
... although you like dictating to others how they should spend their free time. I take it all of the recent PS3 Dev posts are deemed "insignificant" to you as they are over your head, eh?
Believe you-me, we wouldn't "shelf" a project unless the resident PS3 Devs are making progress beyond what they hoped to accomplish with the initial one. 90% of what goes on the public never sees nor is aware of. The remaining 10% (neutered, lagged summaries of what is being done) gets posted in the Site News.
This is necessary because OF the 90% the public doesn't hear about, another 50% of that most of the PS3 Devs are unaware of themselves... only those working on specific portions and project leaders are in the loop and coordinate the direction of development. The remaining 40% of what the public doesn't hear about (that the resident PS3 Devs in the private IRC channel are aware of) usually becomes 'upcoming' Site News.
In summary, the path we are on is determined by the project leaders... who in this case are mostly unnamed (by choice) but consist largely of oldschool PS2 Dev folks and a few well-known coders/crackers from scene release groups. A few have been mentioned in the past Site News, however, most do not wish to jeopardize their reputation (in the non-warez scene) nor careers (licensed devs who moonlight or leak stuff) nor be bothered by lamers (such as the ICE kids who constantly bug CJPC) so everything gets filtered down the hierarchy to endusers.
Additionally, several non-PS3/PS2 public figures have been doing some GREAT work behind the scene. A few months back C4E from the X-Box sector was assisting the resident PS3 Devs, and currently tmbinc and bushing from the GC/Wii sector are as well. So to answer, yes, the greatest minds are leading the direction of PS3 progress... don't worry about the "KeyVault Project" being put on hold... at all.