Honestly, we should've seen this coming. The game is very fun in my opinion and the physics are pretty good, but the slow development and lack of publisher doomed Bugbear from the start. I hope one of two things happens:
1) A publisher picks up the studio and continues development of the game. I'd love to see someone like Codemasters pick up the crew and continue the game's development as a "different branch of racing".
2) Release the source code and let the game become a "community project". I realize this is highly unlikely, but seeing how Unreal Tournament has turned out so far, it'd be pretty cool.