Code contracts was all over the blogosphere years ago before the .NET 4 release, the runtime components included in .NET 4 and the static checker made available in the more expensive Visual Studio 2010 editions.
The buzz around code contracts appear to have died down though, are people using it in production? Is any more work being done on it from Microsoft Research?
Looking at the project page, the last release was June 2nd 2011 - which seems pretty recent to me.
So yes, I think it's still being worked on. Will it ever make significant inroads into the average code shop? It's too early to tell. Occasionally I see Stack Overflow questions on it, suggesting it's still in use in some places - but I haven't seen as much evidence of take-up as I'd really have liked.
I suspect it's one of those tools which is really useful in some situations, and a bit of a pain in others - and also much more useful in greenfield projects than brownfield ones.
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