Is this dead in the water?

No. It's in full development as of right now.

Has a shooting/release date been set? Its very little chatter about this picture as of now.

http://theplaylist.net/sicario-sequel-lines-director-20160601/

The sequel is called SOLDADO, Emily Blunt character is not returning and Villenueve also not returning to the directors chair.

"..."

Well since it got a director and has probably secured funding, it'll probably start shooting this year.

Opinions and critics of movies? just remember the 20/20/60 rule (20 good, 20 bad, and 60 in chance.)