We still have no option to upgrade, and I do believe this was supposed to be available to us at the end of last year. Is this basically a scrapped idea at this point?

I've personnaly bought the 2.* game version and then contribute on offbeatr.
I think that if you paid for the 2.0 game you'll get the 3.0 for "free". But i'm not sure about this at 100%.
I'm sure that you won't get the next releases.

From what I understand, there's a small upgrade fee for those who bought v2 to get v3 when it's fully released. The upgrade was pushed back due to the team trying to make this as complete as possible. I'm also assuming some things were more difficult to finish as well. We're currently looking at July for the full release, so you should see the upgrade around that time.

Yeah I purchased 2 way back before the offbeatr and thought I was going to be screwed. I was not crazy about the info that offbeatr was asking for, scans of my license and crap. Thankfully the admin posted a link where you can upgrade with a small fee through ccbill or something. I believe it's in an earlier post titled: How to upgraded active 2.1 to 3.0?

I also bought the game before the Offbeatr, and I've been lurking these forrums for a long, long time keeping an eye on progress... v2 owners were never promised v3 for free, in fact it was explicitly stated when the Offbeatr launched that we'd have to pay to upgrade our existing versions. Which is great, I prefer to reward progess not promises, even if that ends up costing me a little more. In fact it kind of saddens me that this isn't the primary legitimate way to support the game.

So I'm personally going to keep waiting until there's both a finished Tentacle Dreams story and the two existing v2 stories have been updated... I have been, and will continue to just be patient until then.