There's daily github activity, the blog was recently updated and the forums have new posts every day. Fuel is very much alive and I don't have a clue why you'd think otherwise.
I asked that because i made a survey a little while ago reviewing all php frameworks and fuel answered my needs in every way possible except its community size and age in the market but still I am very much willing and eager to start develop using fuel as framework cause i think its awesome and were afraid this project gone dead, thx for reasuring otherwise
FuelPHP has been around since October 2010, so while it's not as old as some other frameworks, it didn't exactly start yesterday either.
Lack of activity here could also mean other things.
It might be that the framework is so easy to use that most people don't have questions (I'd like to think so), or that the framework attracts a more mature audience, and no noobs that flood the forums of some other framework (this is definitely the case).
There is an active IRC channel (#fuelphp on freenode) which on average has 70-80 people online, most of them using FuelPHP in their day to day business.
FuelPHP is starting to attract attention of PHP conferences (such as DIBIconf recently), so you'll see sessions about FuelPHP appear on the events calendar.
And we're very busy to produce screencasts and howto's, the first few are already published on nettuts, and there are a lot more coming. And there's a new documentation and API site coming that will greatly improve the current documentation.
There is a v1.2 release planned for the next couple of days, and we're working hard on v2.0, scheduled for a first alpha release sometime this summer.
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