My guess: it's sorta in the same fate as Reader is right now, just not being killed as quickly. There aren't many people maintaining it. And they need to upgrade to a newer backend at some point, but no one is around to rewrite it.
It's also important to note that their support for SVN, HG, and Git is all an in-house implementation to work on top of BigTable.
I'm not really sure why they let it stagnate in the first place, but someone made the call that it wasn't worth investing in anymore. Remember that Google Code really came as an answer to SourceForge which was going downhill. But then we had GitHub and BitBucket appear, which have really taken over.
For pure source repos, Google has been using Gitiles[0] for most of their public projects like Android and Chromium[1].
[0] https://code.google.com/p/gitiles/
[1] https://chromium.googlesource.com/chromium/src.git