I'm a little discouraged to hear that Dave Winer is losing Kyle Shank as a developer at Small Picture. Dave says that Fargo development will continue, and that's great news. Fargo is a terrific outliner, and the first web-based writing tool that feels "right" to me.
Unfortunately, it looks like Trex, the server component that makes blogging with Fargo possible, is headed for the back burner. I've been happily blogging with Fargo for a few weeks now and it's been great. I'd love to see development of Trex continue, but I had not yet planned to depend on it so I can wait a little longer if necessary.
Still, the idea of an outline-based, Dropbox-synched blogging system is pretty compelling. I'm optimistically looking forward to Trex's future.