The phone works like a great SIP-phone now, but in the mean time more people have found out about them. One of the sources is a thread (in German) where people discuss the phones and hacking them. There's more info here and here too. Joost is working on some binaries to add functions to the phone, too.
It may be interpreted as a sign of the times that hardware worth like a hundred bucks or so can't be used anymore, just because the people selling it have given up on the servers the devices connect to. On the other hand, it may also be interpreted as a sign of the times that these devices get snapped up by a whole variety of hobbyists and tinkerers, which actually succeed in making it into a worthwile device with only some elbow grease. These devices have the possibility to become a nice general-purpose ARM board. In the mean time, I like 'em just fine as the phone they are, though.