Much as this pains us to say it, Google Wave has finally been killed by Google despite the initial hype by users all over its awesome features. While we did love the service, its laggy and sometimes buggy usage didn't really keep us interested in spite of its potential. Well, here's to you Google Wave, and may your technology behind be used for other products.
googleblog.blogspot.com - But despite these wins, and numerous loyal fans, Wave has not seen the user adoption we would have liked. We don’t plan to continue developing Wave as a standalone product, but we will maintain the site at least through the end of the year and extend the technology for use in other Google projects. The central parts of the code, as well as the protocols that have driven many of Wave’s innovations, like drag-and-drop and character-by-character live typing, are already available as open source, so customers and partners can continue the innovation we began. In addition, we will work on tools so that users can easily “liberate” their content from Wave.
Full blog post here.