Correct, however ignoring Episode 3, they already ARE working on several projects:
-Portal 2
-Mac porting (though I don’t know if they’ve really even done any releases lately)
-PS3 porting
-The continued added content to TF2
-General product support
Their resources are finite, and it looks like they’ve got a lot on their plates as it is, and considering the amount of hype they drum up for all of those things, yet absolutely NOTHING for Ep3, it does make it look like that they took it off the stove, entirely.