Did it get scrapped, sidelined or what? l can not find anything newer than news from 2006 on it.

l think l saw it on display in Paris, at the Peugeot ''store'' on the Champs Elysee in Paris. In April 2008. Close to the Arc de Triomph
This store only sells Peugeot souvenirs, toy models, clothing, etc. They had a very old race car too, & a new 207 at the time.
l am sorry but l only took a photo of the OLD race car, & will provide a link to it here..

http://i255.photobucket.com/albums/hh155/trevor_trillion/2008AprilParisLouvrePurnells072.jpg

GOOD NEWS: l FOUND a Youtube clip taken at the Peugeot Store in Paris:
http://youtube.com/watch?v=jspsB2G2lpY&search=peugeot

There r several film clips to watch about the 907 Concept car.

It is on display at Peugeot Avenue store at Champs Elysee for a short time. This store has a display of maximum 3 Peugeots at any given time.

The cars at display in Peugeot Avenue change every second month.
They r transporting these cars from Peugeot Museum to Paris & back.

At Peugeot museum there r all the Peugeot models ever made including concept cars (excluding those Peugeots that r on the display at Peugeot Avenue Paris or Peugeot Avenue Berlin).