
No, BeOS is not dead as many will speed to the forums and proclaim.
YellowTAB's Zeta is the true inheritor of BeOS 5's fortune, as it is based directly on Dano/EXP's codeline (which was supposed to be BeOS 6 but was never finished as Be sold its IP to Palm). At last, I got my hands on Zeta Beta-5a, and here is what I found and think of it so far. You might need to have some experience with BeOS in order to follow this article, but screenshots are included to make it easier for everyone.
The 64bit computing is just a recompiling away and a bit of testing/debugging. There is nothing stoping YTAB porting to a 64bit CPU.
The problem is, as Billy said above, lack of innovation and features that will sustain the OS and bring NEW users to their market. YTAB won't survive with only the current or ex-BeOS users as customers. It HAS to attract new ones, and to do that, it will have to prove itself against the big sharks. And you can't do that with 5 employees scattered around the world...
But I wholeheartely wish them the best of luck! I really do!