Hi jaagare, I got your PM about this and had a look at the developer's site.
There doesn't appear to be anything specifically mentioning ongoing updates, however they seem to have had a major change recently, new domain etc, although I did check archive.org and found their old license terms, which again made no mention of updates, so it sounds like legally they may be covered with respect to not offering any more updates to you.
Not sure if they promised anything via email or in their forum etc.
I do take issue with some stuff though. In their current license, they reserve the right to change the license agreement at any time, and without notice to you,by posting the new license on their site. Your continued use of the software indicates your acceptance of the new license.
Does this mean they change the agreement without telling you, but still expect you to be bound by the terms of this new license? Are you expected to check their web site every day, just in case they secretly updated the license terms? That doesn't sound right to me, however I don't know much about Aussie law, but I would suspect any changes should be notified by email with at least 7 days notice - I suspect you should also be given the opportunity to not accept it (i.e. if you just wish to continue using the existing version under the license you agreed to at purchase). Typically a new license agreement will be linked into a new version of the software, so the act of downloading the new version (and ticking a checkbox etc) will confirm your acceptance of the new license.
I also take issue with them suspending your account (and threatening to report you to your host), based on your stated intention to sell the license. Yes, suspend your account if you did sell the license (it appears to be non-transferable), but you haven't yet, so they should honor the license. They are the ones now breaking the license agreement, not you.
Basically, they don't paint a picture of a company many people would like to do business with, but I do think it may be better to move on and chalk it up to just one of those things - I still think you could post your experience on consumer review sites etc, as long as you are careful to stick to the facts (and the ones you can prove should you need to). People do read this stuff and do take notice of it.