The project is alive and well! The project team working on BlackTie have merged into the JBoss Transactions team (we maintain separate repos and forums etc still) and so have the ability to add even more of BlackTie into the JBoss Transactions project.
That said, we are working hard on M2 which should release this year. One of the main features of M2 is that it will deploy onto AS7 and also that it should reduce the requirement for TAO on the client side, although it may still be required until M3.
Here are the current Jiras that being worked on: https://issues.jboss.org/secure/IssueNavigator.jspa?reset=true&jqlQuery=project+%3D+BLACKTIE+AND+%28fixVersion+%3D+%225.0.0.M2%22%29+AND+RESOLUTION+%3D+Unresolved
Hope that clarifies!