The latest link I can find is from last may and that's Beta 1. Did Microsoft give up on this? I realize they are just basically MSBuild templates, but curious nonetheless.
I hope they're not still alive.
We probably used them improperly so it's probably our own fault, but they caused us huge issues when we wanted to update just a portion of our site. The supposed benefits of using web site deployment projects never paid off for us and just caused more problems than they were worth.
Edit
Drats. They're still alive.
I second David stratton - these things are the definition of half-baked. Good ideas wrapped in poor execution, the best thing I can say about them is that they aren't InstallShield.
I don't know about the web deployment projects, but here's something that's definitely alive: Web Deployment Tool (MS Deploy).
My guess is that they are packing this into Visual Studio 2010 . See http://blogs.msdn.com/webdevtools/archive/2009/06/28/vs2010-beta1-web-application-project-database-package-and-smo-options.aspx
The response from Microsoft:
Web Deployment Projects is not currently planned to be part of VS 2010... As WDP is out of band we have not yet started planning on it as the team is focused on working on VS 2010 at this point...
Looks like they've definitely shifted their focus onmsdeploy and "web packages."
Web Deployment Projects are going forward in VS2010 - which is good news since web packages do not support Website projects