Agostino Russo, the person responsible for creating and maintaining Wubi, seems to have disappeared from sight. Since the run-up to the release of Ubuntu 10.04 (in April this year), he has been conspicuous by his absence.
From Ubuntu IRC logs, it seems that Colin Watson is now responsible for Wubi, but is either unable or unwilling to deal with seemingly minor, showstopper-type bugs that Wubi has suffered from lately. In fact, the bugs appear to be from Colin's own code changes in Grub2.
So what is Canonical's strategy on Wubi? If I were a conspiracy theorist I would suggest that the developers wish to have Wubi removed by making it so unstable as to be unusable. But I am not into conspiracy theories, and I instead believe that it's more likely due to lax maintenance/testing standards.
So that brings me to my point. Where is Ago? He's clearly the only one who has been able to keep Wubi going, and hopefully he can find the time to get things back on track.