The money's been raised for Karl Stiefvater to implement a change to let mesh clothing adapt to shape parameters other than just skeletal ones. Details at NWN.
That leaves the issue of funding further development of Kirsten's client. That may not be as easy, as we're talking nearly five times as much money... but we're also talking about the SL client for people doing serious graphical work in SL--photography, machinima. If we want it to continue, it's time to colocate our $$$ and our mouths.