We're still very enthusiastic about co-op, but we've also been struggling to bring in enough money to keep going (and had to shed staff midway through making The Last Federation because the money was simply running out). One thing that's meant is that we have to soberly evaluate with each given game project whether multiplayer is really a help or a hindrance to the design and to us getting it done in a reasonable amount of time, etc. In the end with TLF (and with Bionic Dues, before that) there just wasn't a multiplayer mode that made sense. With Bionic we made one, but the testers told us that it really stunk and nobody could really come up with one that was better, etc.
All that said, TLF is selling very well and may change the financial side of the equation for a bit, giving us a bit freeer of a hand as far as co-op goes