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It still exists as Continuum -> http://www.getcontinuum.com/

From the website: Ever imagine what it'd be like to play Asteroids against your friends?

Subspace is exactly what I had in mind when I saw the OP. It even has a bot API, though unfortunately no one has made a fully-playable one yet.

May I plug my own game here? It's not multiplayer but still favor intense dog-fighting with AI.

A multiplayer mode is the most requested feature, but I don't know if it's worth it.

That game is evil. It ate at least two startup's worth of productivity from me.

this is one of my all-time favorite games.