Well, Hype 3.5 has created new possibilities for game development. I certainly haven't lost interest in Hype Physics...
I'm waiting for Hype 3.5 to launch so I can post more in that thread.
The only problem with Physics is that it's intentionally limited. If there was a get/set API for Physics, similar to getElementProperty() and setElementProperty(), that's game development city! (Collision detection events are big too.)
I created two mini games with Hype already. One is the slide puzzle...
Another seems similar to what's being discussed here...