Just wanted to say that the project and I are still alive.
For the past few weeks, I've been poking and tweaking generated caves. It's one of those things that's tricky to get right but that really has to be done right the first time or there are follow on consequences. The fortunate thing is that the two-step process of cave generation is exactly the same infrastructure needed for random dungeon and town generation... their data structures are just different.
It seems like I'm down to the "parameter tweaking" phase. There are some really kick butt caves and gorges generated and some really mediocre caves generated. I'm trying to make less stupid caves and more cool ones. For example, right now sometimes there are a lot of caves that end up in open air and so we never see them. Some of that is good because when the particular cave system dips below ground it makes for some interesting openings... but it happens far too often.
Another reason it has been slow going is because I find some cave systems that I really like and then I'm hesitant to change the parameters and lose those caves. I end up having to take a break and come back with fresh eyes and be willing to trash all existing caves for the cool caves yet to be.
Anyway, current cave systems are fully functional with respect to water... so caves that start in the water will contain water until rising above sea level, etc... was an interesting algorithm to get working without flowing water but that's all done and working now as far as my testing shows.
Hopefully you've seen some of the pictures on facebook. Hopefully this will all be set to release by Monday. Really hopefully, I can finish caves tonight and get to work on some other things before Monday.