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Natami lives and is being developed. I am one of the system testers. However the homepage and a lot of the promises about the system is the work of Gunnar von Boehn, who left the project several months ago. That is why the public activity on the Natami page and forum is low. Surprisingly few people wants to know actual facts about the system in its current state, they want to hear promises and propaganda. And with the guy willing to make propaganda gone - well, you get it The Natami is most likely to resurface under another project name, with goals more in line with what the main developer Thomas Hirsch wants to do with the system. We will see if there will be further public updates or not until completion.
What makes you think it will be cheap?
As dead as the mythical OS4 NetBook I'm afraid.The FPGA Arcade on the other hand looks like it might start shipping in numbers one of these days.