Alas for progress, both
Heckler and Koch's G11 and
Dynamit Nobel's advanced caseless ammmunition are now essentially defunct, having been postponed in 1990 and cancelled indefinitely in 1992. Whilst technologically advanced and apparently extremely effective, the G11 system was deemed to be unnecessarily extravagant in a Germany recovering from reunification after the end of the
Cold War; furthermore, the weapon was non-standard with the rest of
NATO, there were persistent doubts about the lethality of the round, and both the weapon and particularly its ammunition were difficult to manufacture with local equipment - which made foreign military sales and licenced construction problematic, especially given the lengthy development time and high r&d costs involved. Not to mention the fact that the West German army was now awash with East German equipment, including thousands of Kalashnikovs (many of which subsequently found their way to the former
Yugoslavia).
The cancellation of the German government contract was a severe blow to Heckler and Koch, as was the simultaneous failure of the G41 assault rifle. This led to the companyt being bought by Royal Ordnance - now part of the giant BAE SYSTEMS - in 1991; the company later worked on the British Army's problematic SA-80 assault rifle. Nonetheless the Bundeswehr still required a new rifle, a need which Heckler and Koch fulfilled with the G36, a non-bullpup, 30-round, gas operated rifle which used standard NATO ammunition.
The G11 has nonetheless had an influence on subsequent designs, particularly the FN P90, which uses a similar ammunition feed system (the magazine runs horizontally along the top of the rifle, with the shells rotating through ninety degrees as they enter the chamber). Integral scopes and polymer construction were novel when the G11 project was embarked upon in the late 1960s but are ubiquitous now. Only the use of sub-sub-calibre ammunition has not caught on, although the P90 has achieved military sales to Belgium and Sweden.
Undoubtedly, caseless ammunition and the G11 concept (if not the G11 itself) will be revived in the future, although given the slowing pace of military small arms development this might not yet be for fifty years, if that. The British Army's replacement for the SA80 is likely to be either the aforementioned G36 or Diemaco's Canadian-built versions of the M16, whilst the US Army is too large for something like the G11 to be fielded economically. The marines in Aliens used caseless ammunition, however, so there is still hope that this fascinating one-off might see service, albeit not on Earth.