I've threatened to update it a few times now. It does have some use, but in the end it's just the material editor with a larger preview. If there was an online repository that could have materials submitted to it like the google warehouse, then it would have more of a purpose. Given it's current level of functionality though, it falls fairly low on the list of priorities. I believe it was made before 1.05.29 was released, so it definitely needs some love soon if it's going to continue to survive. The vrimage tool was updated after the latest VfS release, so it should work fine with VfS generated vrimages.