Playtesters are working on the new tactics, mostly on the core mechanics and trying to refine and improve them. It is important to remember that Flame of Freedom was new to everyone, and we know a lot more about the game then we did when it was released.
Broken City was going good, I really hope we nail this one and it does well enough that Broken City gets to be made, because while it wasn't finished by a long shot, some of the characters were fabulous.
The problem is this next set is going to be a re-launching of the franchise, and Broken City isn't a good place to relaunch from. Just like Rook City, which is my favorite SotM expansion, wouldn't have been a great point to launch that game. Prime War has more iconic characters, and much more overlap with the original base set of characters from SotM. It is a much better flagship for the franchise than Broken City and For Profit, purely from theme and the faces on the box.
A lot of the revamping is for retail and drawing in new fans. The SotM fanbase isn't going to latch on to tactics as a whole, the games are very different and appeal to a different style of gamer. There will be a lot of cross-over, but not enough to sustain the game with that group. They need to bring in new fans and players or the franchise will die. That is the sad reality of where Tactics is right now. This expansion is trying to draw in as many new players as possible, and inspire the players who didn't love tactics to give it another try.
We haven't heard about Akash'Bhuta yet, no clue if she is getting pushed back as well. The focus is on the game system right now, Akash may have to wait until that is finished before she gets worked on.