I think it is dead. At some point so much time goes by that it stops being worth it to continue it. Its hard to picture Alan Wake 2 coming out 10-15 years after the first.
It's not that hard to picture, but they would have had to start on it right when Alan Wake first wrapped production to meet such an ambitious schedule.
I'm curious to see what they do. I want them to do more in the AW universe, but I also loved QB and imagine that whatever they come up with next will be pretty interesting as well. Kick ass, it's what they do.