Midterm evaluations for GSoC are over and I've released a short demo for the entity embed module: Introducing Entity Embed module for Drupal 8. This screencast explains the basic idea behind the module and its usage.
As for the status update, the module is ready (at least for testing purposes). As it's explained in the video, the module has basically two components: a text filter and a CKEditor plugin. The filter is fully functional and though it's also nicely integrated with CKEditor, there's still some work to do in order to make the plugin more configurable. That being said, I believe it is a nice time to check out the module and provide your feedback.
You'll need to install the latest dev release of the module which can be found at: https://drupal.org/project/entity_embed. Note that the module currently works only with the latest release of Drupal 8.x (and not with last alpha release).