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UO needs a new expansion to bring back some life. But SA is tied to KR, and KR is in no shape to force players to use. Thus, I believe there is going to be an announcement within the next 2 months that Stygain Abyss is going 2D compatible. They have absolutely no alternative short of hiring 100 people and working 24/7 to fix KR issues.
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No.
UO needs new players to survive in the long run, therefore just another expansion won't cut it.
You do not need 100 people to keep a game running, more like 10 or 20, max 30.
I actually think, if SA ever get's released it will be indeed just for KR. But it won't happen as long the majority of the players can't use the KR client for various reasons.
They have to fix the KR client before adding any new contant/expansion such as SA.