Here's what I understand of the situation:
History:
1. Frametrapped releases open beta
2. They want to speed up development (~9 months or so) so they switch over to closed beta and launch indiegogo
3. Capcom stops their indiegogo with a relatively mild C&D on the last day.
4. FT tom gets a hold of Matt Dahlgren and they start talks with FT as official dlc (similar to what happened with megaman x streetfighter), but the rep tells him ultimately the decision is in capcom JP's hands. They put off talks until new years. At the time tom didn't know why but later we learned about SF5 and all that so that makes sense.
5. Which leaves us where we are now. There's a very high chance capcom JP will give the no-go to this project which is why outlook doesn't look great.
More here. My personal take on what will happen is capcom JP will probably try to give it the axe (because unless it's tidily bundled like MMxSF was they think it'll be too much work, and right now it's not tidy at all) which puts the FT guys (Tom and Lullius, the slitherware guy) two basic options:
1. Release the code by itself (dangerous because this is how the toolassisted guy popped up after the guy who took apart SF4 showoff to make SF4 combotrainer released the source code iirc)
2. Hook the program into any fighting game so that capcom doesn't have a legal leg to stand on as it's generalized and separated from the streetfighter brand (similar to how cheat engine, gameshark, etc gets by)
Either way
most likely it'll be released eventually.
My two cents.