Blizzard North currently has 2 unannounced projects other than the Diablo 2 1.1 patch. As JcL said, Blizzard North is still a part of Blizzard, they have not seperated off as seretogis said. 4 members of the head of Blizzard North left the company, but the company itself is still there.
The team that made WC3 could possibly be doing SC2 right now or they could be on something different. There are 2 teams at Blizzard, the ones that made WC3 and the ones making World of WarCraft. Blizzard North used to have 1 team but apparently now has 2, but neither of teams could be working on SC2.
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