The short answer is "yes", and the long answer is more complicated.
There hasn't been anything more to share since the announcement last year (which was about the involvement of the Jim Henson Company) because things move incredibly slowly in movie-making, unless there's someone with a pot of cash trying to get things out quickly (as is the case with blockbuster Hollywood productions). In this case, there isn't a major financial backer yet (or, at least, not one that's been announced) so it's probably a lot of preproduction stuff that's going on - script revisions, concept art, etc.
We spoke briefly to Rob on the phone at the recent Australian Discworld Convention - mostly about the upcoming Good Omens (of which he wasn't allowed to tell us much, not even the casting which was announced the other week - we spoke to him on August 5th), but what did get mentioned about The Wee Free Men is that it's not a dead project by any means[1], but there's no progress to announce as yet. The Henson company is hard at work at something else, so it's in their queue, it's just not being worked on right now.
Given that it's taken 20+ years and several iterations to get Good Omens to the screen (finally!), we will unfortunately have to exhibit a fair amount of patience when it comes to these film adaptations on Terry's works actually being made.
[1] and The Watch isn't dead either, it's in the scripting stage, and is again also still in very early preproduction, despite being announced 9 years ago.