Well, the Parallella has shipped to over 10,000 people and it still selling at Amazon an DK, so no the dream is not dashed in any way. The number of publications and frameworks around Parallella is growing every month...
No reason to drive a 1024 core chip to the broad market when most applications aren't ready to use 16 cores. With this chip we focus on customers and aprtners who have proven that they have mastered the 16-core platform.