Even I, as a retired EVE Online player, remember how big of a deal the Incarna update was going to be, as even back in the first few years of the game I thought, man, wouldn't it be nice if your avatars actually did something? And then it...didn't happen. Incarna came out, it went, and no out-of-ship exploration or station-wandering was there. What happened?
According to PCGamesN, it was just put on the backburner while they made it feel fun. CCP's own Ned Coker explained,
As a platform it still works out really well for us, but based off player feedback we took a step back from our Incarna full development plans. We've had a team doing prototyping work on what Incarna gameplay might look like in the context of EVE's gameplay. They've done a couple of iterations on what that might be, with the 'EVE-ness' of it in mind. So you know, things like risk and reward, multiplayer action, stuff like that.
On the bright side, even though it's been put as a lower priority, they're planning big things, including Star Trek-like environmental exploration, including wrecked ships. Right now, though, it's just not feasable, so they're beefing the main game up before the sideshow gets brought out.
Julian "Mirai" Williams