How far along was development on FS11?

I wonder how far along development on FS 11 was before the team was cut. I remember when Aces was shut down, that several team members were retained to package up the existing code. From a financial point of view.. which Microsoft is all about, then it seems like they wouldn't just let the work and investment go to waste. On the other hand, they could farm out a few contractors to work on program and "dumb" it down a tad for the masses. From a marketing perspective dropping the "simulator" out of the name was good. I mean, Microsoft Flight sounds fresher than Microsoft Flight SImulator number 11.