Steve was actually fired by the money people that took the company over from him a few years back. He was basically a figurehead from the time they came in anyway. He was hired and then fired by the Chinese company within a few months, has now started up a new company called SMS Supercars and is going racing again. I spoke to him last month and he is very excited about the new projects.
As far as Saleen Inc going out of business, not that I've heard. The auctions are to liquidate equipment and inventory at two old facilities as they move into their new one.
And yes, Saleens have lacked a lot of the elements of what made them Saleens since Steve left, IMO. It seems like their entire schtick these days is putting a particular paint scheme on 10 cars and calling it a "Limited Edition".