Not dead!
I have been working less and less on this but the other day buckled down and made some progress.
I have almost finished the Demo.
It goes up to the Ilex Forest.
Why?
Because, I want a demo out and Goldenrod is one of those cities I really want to take my time with.
Anyway, (Violet is one of the last gyms BTW)
So the demo will include, the first gym, first rival battle, first cave, first forest, one house you can buy, and 2 'special people' I haven't decided what to call them but they are the ones you can make friends/enemies/etc. with. Nothing much, or to exciting, mainly just a preview for what's to come in later versions.
I have also been questioned about the houses, mainly what are they for?
Well I always thought it was strange to live with your mom after you're a big shot trainer but, in this game you can have a house. Only one at a time though and, they are quite expensive.
But why do I need it?
You don't really, just a place you can heal your pokemon, have a roommate, have a pet pokemon live there, I'll try and think of some other stuff to add for later versions.
In the first demo, however, there is nothing much to do in your house. Pets have not yet been introduced and, there's only two people you have as a roommate. Nothing to special. =/