I think Alec/Derek have given up, but it's really depressing and honestly frustrating and a little angering, because honestly Aquaria isn't like a game that flopped because it's bad - as far as I've noticed, Aquaria is a special case where most people just haven't heard of it or they have but haven't played it and the vast, vast majority of people that play it not only like it a lot, they love it and say it's a really good game.
It's also a game that has aged really well to the point where that it's a few years old is really meaningless when the case is just that people haven't HEARD of the game - you could get someone to play it NOW, and they'd believe it was new if they didn't already know it wasn't, because the age doesn't show at all. Because of that reason, giving up on the game just angers me, it's just as possible for it to succeed now as it ever was, all it needs is the proper publicity.
It just never got it, but if it ever DID, it can still take off. Look at Minecraft - that was a game that existed for years and only a few people knew what the fuck Minecraft was, and even less knew who Notch was. But Notch, unlike Alec/Derek, was lucky enough to get lots of publicity - his game REALLY started taking off when he got those comics made about how great his game was, on Penny Arcade. If Aquaria could be so lucky, it could take off just the same. Even now.
To bring this back to the mods - it definitely helps. That's more publicity, and Aquaria definitely has a really really good modding system, especially considering it's just an indie game, that system really manages to be better than a lot of mainstream official games. Some actual, decent, quality, lengthy mods would really help I think, so I fully support mods with heart in them, especially given how amazing the actual world of Aquaria was.
But I mean, if a mod gets finished that's basically its own game built off of Aquaria, then people can advertise the mod around on its own merits, and in doing so, advertise for Aquaria and get people interested in THAT. Sortof like how Mario World hacks advertise Mario World, if there were someone that hadn't played Mario World, the hacking community certainly keeps it alive so that people can still be introduced to it today.