TinyMUX is not dead, but should you use it for your new MU* projects? Maybe? These are my general recommendations:
If you're looking to make a WoD game and you either cannot (or just don't want to) code it all yourself, then you're going to want to use MUX because that's what nearly all of of the existing body of available WoD code was written for. As a non-coder, you simply won't care about the features that MUX lacks.
If you're an experienced coder and don't mind doing a bit of extra work porting stuff, consider going with Rhost instead. Rhost is nearly completely compatible (I'd say 95-96%) with MUX while at the same time offering a bunch of really nice features that your coders will thank you for. It's still being actively developed, and if you run into any problems, you can stop by the Rhost Development MUSH and talk directly to the developers. Ash is very approachable and is always willing to help.
For anything else, I recommend PennMUSH, simply because this is the platform with the most available code, including several starter DBs (such as Faraday's and Volund's) that'll give you a mostly complete game right out of the box. It's also the platform of choice if you intend to add hardcoded systems such as Hspace or Aspace to your game, or if you intend to make use of @grapenut's excellent websocket addon. Penn is still being actively development, and getting help can be as easy as logging on to MUS*H and asking.