I know that folks are still getting grants to study the smart gun.
It is a complex issue and has been discussed previously. The issue breaks down as follows.
A. There is a felt need, independent of politics for smart guns. The reasons are that police shootings have a large proportion of shootings from being disarmed. Of course, one can argue that proper training prevents this but stuff happens. Quite near where we live, a SWAT officer was disarmed and killed and he was not a wussy by any means.
There is a small number of kids shooting themselves - although the number of actual occurrences is small.
Thus, a safe gun appeals to the cops.
Guns can be stolen also and it was thought that a safe gun would be useless or too much trouble for the average crook to disable.
B. Gun companies like Colt were stunned by the dominance of Glock in the police gun market. They were not competitive. The Colt 2000 was a big flop. Smith also had problems with the cop market - the Sigma was not a cop success. Given the disarming problem, it was thought that if a company could get a good safe gun out there, they could dominate the cop market.
Unfortunately, the guns didn't work or the base gun for the smart gun was crappy so no one wanted the gun period.
C. Some consumer research supposedly demonstrated that there were consumers that might buy a gun if it were a smart gun as they had fears about kids, being disarmed, thieves, etc. That would increase the market for guns. That is not a bad idea if the gun worked but interacts with my next point.
D. Antigunners saw the gun as a slippery slope attack on guns. They would mandate safety features that would make the gun too expensive for most, cast guns in a dangerous light and institute all kinds of controls on them. Thus the safe gun was just a move to make all guns evil and ban them.
Interestingly, some antis like the VPC didn't like safe guns because if they made the product safe, more people would buy them and that wasn't their agenda.
In any case, I know folks who have worked on it and moved on. The technology, ergonomics and tactical usage are so problematic that with current methods, it won't work. I think the Uncle Mike's finger print retention holster went nowhere fast.
In the abstract, a working safe gun is a reasonable consumer option. We buy guns and holster with varying degrees of safety features. The problem is the legislative process mandating that guns can only be safe guns and using such regulation as a slippery slope attack on all gun ownership.
Companies that made safe guns would be apriori evil if they used such a product to push to ban other options and mandate their usage.
Interestingly, bills mandating safe guns usually exempt the law as they don't want to go near that technology in its current form. They were the major selling point for the guns.