Well, there's nowhere else to post about it apart from OpenGL.org forums
There is a sad lack of any other non-gaming Java forum for 3D graphics, so here is where we post about our occasional updates.
Like all toolkits, it's up to the end users to decide what they want to do with it. Yes, you could develop games with AV3D, but our primary development goals do not optimise for that path. As our company mostly does military, medical and scientific visualisation, as well as commercial applicaitons (see Shapeways), we make sure the toolkit is well suited to handle those tasks.
That said, there is nothing stopping someone from developing a game engine on top of it. It is just a scene graph after all. My current work is making sure that all the existing multipass techniques work. Some deficiencies are being worked on right now, and once those are corrected (for a 2.1 release), then all of the current, and hopefully future, GL coding strategies will be possbile within the AV3D API environment.