I think the 'status' might be described as : Pillay has shown using used Selah's work that the free group is not CM-trivial.
All known counterexamples to Zilber's conjecture are CM-trivial. A non-abelian simple group of finite Morley rank is not CM-trivial. We therefore suspect that the current methods based upon the Hrushovski's counterexamples cannot produce even an infinite rank counterexample who is a simple group.