The VM development will continue for use on servers, embedded, and mobile, they just have no plans to integrate it into Chromium.
Dart tools: pub's (package manager) client, analyzer, dart2js compiler, etc are all written in Dart.
We have a good story for server side developement and we are not looking to abandon it but rather we are looking to expand it, e.g. we just released a package to facilitate creation of REST APIs[1]. Pub's server side is being rewritten into Dart as we speak[2]
Among cool internal users of Dart VM I could mention Google Fiber - they'll share their experience during the upcoming Dart Summit[3].
[1] http://news.dartlang.org/2015/03/create-your-own-rest-api-wi...
[2] https://github.com/dart-lang/pub-dartlang-dart
[3] https://www.dartlang.org/events/2015/summit/sessions/google-...