Fuse4X is a fork of MacFUSE that aims to unblock macfuse development http://fuse4x.org
It might be a good idea to migrate to it. The only issue is that Fuse4X currently supports only macosx 10.6.
Is there any development?
There is also development of osxfuse, which is a continuation of MacFUSE that will not require recompilation and/or code changes. In fact, I'm using OSXFuse with Macfusion as we speak :)
Macfusion works with Fuse4X 0.8.7 simply by symlinking the included sshfs-static binary to the 2.3 version provided by Fuse4X. Fuse4X supports FUSE 2.8.5, so both the upgraded sshfs and underlying FUSE system might amount to several Macfusion improvements.
Instead of making users choose between the embedded MacFUSE built sshfs or the Fuse4X one, maybe a GUI option for referencing sshfs outside of the Macfusion Application directory would be nice?
+1 to what Joe Auty said. Even better if MacFusion use sshfs binary from PATH. There are a plenty of ways to install sshfs - from *.zip file, by compiling it locally or by using your favorite package manager.
And only in case if sshfs is not available in PATH then macfusion should use embedded sshfs binary.
Macports is another example of how some users install sshfs...
Actually the latest version of fuse4x has "macfuse compatibility layer" and it works with macfusion natively. https://groups.google.com/forum/#!topic/fuse4x/-yoJktPdwvc
Although I still think that ability to allow configure path to ssh binaries is a good thing. Current macfusion contains ancient version of sshfs, while macports/homebrew has the latest version (2.3). It would be great if people were able to use it.