Gizmodo is reporting that Microsoft has killed the Courier. Here is what Microsoft had to say:
At any given time, we're looking at new ideas, investigating, testing, incubating them. It's in our DNA to develop new form factors and natural user interfaces to foster productivity and creativity. The Courier project is an example of this type of effort. It will be evaluated for use in future offerings, but we have no plans to build such a device at this time.
I'm a little surprised by all the news coverage for a prototype. Wait. Since it never actually existed, wouldn't that make it a concept piece, not a prototype? This is simply ridiculous.