I imagine, to say the VERY last, the converter is a difficult task. Not just to make an interpreter, but to make sure everything works smoothly on a huge variety of Android hardware platforms. The developer of Undefeated (the one game so far ported to Android) has said that even custom scripts need to be modified to work with the converter. So it's not a simple "Push a button and out pops an APK" I'd imagine said developer ends up with two nearly independent games.
So I'm 100% sure it's not dead, but I'm 100% sure it will take them quite a few months to work out the kinks in the converter. And, even then, it sounds like game developers will need to customize their scripts/etc to work well in the mobile environment.
But I agree, I'd love to see built-in Mobile support in the next RPG Maker, whenever it comes out.
Personally, as a developer (not associated with Enterbrain), I imagine Andar is being optimistic about the 2 year timeline, since the not-yet-even-in-public-beta converter probably will occupy all of Enterbrain developer's time until it's perfected and for a few months afterwards as they work out more kinks with other end user's games. I'm sure they want the converter to be as high quality and easy to use as possible before they release it to the public, even as an early beta. And that is no small task.