Are you pleased with how Lisk development is progressing?
They seem to be stuck in a mostly locked state until the legal entity is setup in Germany. Apparently the rules of the trust max setup with the other two trustees prevent him from spending crowdsale funds until the ggmbh is operational. I've provided a lot of recruitment bandwidth for Lisk when they have funds to do so; however, to answer your question, I am not pleased and I'd like to see more. I'd like to see a roadmap soon and milestones.
Right now we don't have access to the ICO money. Legally (escrow terms) we can get access to it after the first Lisk block was forged. Due to tax reasons however, we will only have access to it once we registered the Lisk entity as a non-profit organisation. This is a process which still takes several weeks.
I recall Max saying around the beginning of the ICO that they would set up the entity in Germany but if the amount raised turned out to be sufficiently large they would do it in a different jurisdiction to avoid the tax problem. I haven't been able to find the quote, however on Bitcointalk or the Blog, so maybe it is in chat or on the forum. I did find a quote from March saying the hGMBH thingie would take a few weeks to set up.
I agree with your preference that Zug would be far better, especially given the grossly excessive delay the current route has caused. Another option would be to factor some of the ICO funds to provide an interim operating budget.
