Situation is Frontcode (original authors) have withdrawn from the game under threat of litigation if they didn't, so there will indeed be no further updates from them.
The RIAA are running a campaign of flooding fake search results onto the network to piss users off, this was happening BEFORE Frontcode withdrew & continues.
The situation vis-a-viz versions is it's entirely your choice if you use 3.53 (the final public release by frontcode or 3.54 which was in beta testing at the time, & being relatively bug free, was close to public release, but has greatly improved library function.
The question of using PG2 boils down to choice of PATCH rather than version, if you use the .dll patch from
www.winmxgroup.com it isn't needed, if you use a hosts file (typically from Pie team) then it IS, in order to block the RIAA from connecting & flooding through YOUR connection, to the detriment of everyone.. & the stability of your own connection.
In EITHER case, searches should be being made with -user in the second search field, to prevent you getting flooded results in your own searches, from users who AREN'T using the dll or PG2.
I've tried to be clear here, but if this is confusing, by all means ask for clarification.