After almost a year and a half of sitting derelict, the PyTeX project is alive, all due to Jonathan Fine. He's come on board as a full partner, with the greater and long-term vision of creating a Python module to create TeX documents directly from Python, without using LaTeX.
This goal will be the longer-term measure. The original project goal of wrapping LaTeX with Python structure will be a short-term means of achieving the same end-goal, as well as a method to boot-strap the direct TeX writing functionality.