RE: 797 story:
Check your 'news' source on that ! The 747X or now properly named 747-800 is alive and well on to becoming a reality - at least the F.
The blended wing design is old news - however preliminary numbers show great promise. With composites leading the way to more radical and efficient airframe design, it should be relatively simple to construct such an unusual craft compared to the standard rib-stringer-sheet aluminum build methods. As ETOPS773 says, controlled flight is another story.
RE: Gov't subsidy and Langley Research Center:
I know several people over at LARC, and believe me, use of the wind tunnel facility and the associated tech comes with a large bill. The US government recieves money from Boeing (or anyone else) when a testing regime is implemented, not the other way round.
It is indeed lovely