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So I really dig the style of the sky dwarves and have already bought into them but going deeper into their options they seem really one dimensional and well, not very good over all.

Is there any hope for new releases in the next year or are they done for a good long while?

Don't hold your breath on a new release.
Hopefully the new GHB will either drop some of our units point cost, give us more battleline options ie. Thunderers or skywardens, maybe both? Maybe Even updated warscrolls..

Just wondering though, what do you find to be one dimensional and not very good?

They are one dimensional in that the whole army is mid range shooting + mobility + decent melee. However there is a lot of depth in that niche and when played well the army is quite strong. When played poorly, on the other hand... Suffice to say its a very skill-driven army. We can see this because they regularly make decent showings at tournaments (though some of this is due to double-turn meta) even though they can't compete with the upper cheese armies like Tzeentch and Stormcast.

When I say one dimensional I mean that outside of riggers and the Ironclad there just doesn’t seem like there is a lot going on here. Thunderers seem overwhelmingly meh and the one and only battleline choice is extremely boring on top of that. It seems the heroes are largely not exciting either.

Gunhaulers feel way to expensive, the battleline is extremely boring, the heroes aren’t anything to write home about, even the khemist. On the whole even the Ironclad looks like it struggles to keep pace with other 400+ entries from the game.

Am I being too hard on KO here?

I think you are being a bit too harsh, If you're talking from a competitive point of view then a lot of armies are one dimensional. If you're happy to just play casually then there is a lot of variety, mixing up different skyports even with the same list can change how you play.

I like how a unit with a balanced point cost becomes 'overwhelmingly meh'.

That's kind of the whole issue with a tournament only mindset. Balance is meh.

Okay well lets break down "meh", as in "meh, it is isn't great, it isn't bad".

Which would be fantastic if literally every other unit in the game was also "meh, not great, but not bad".

Also, that thunderers are "meh" and everything else is either actively bad or an Ironclad or balloon assault troops means the KO feel a little, one dimensional.

I agree that on the whole that KO are a balanced book. However, it seems that little else in the game is. My gaming group plays friendly only games, and we're all evenly matched skill wise (from years of playing against each other). However, when I bring the Overlords to the table, all I get are sympathetic looks and comments like, "at least they're nicely painted". None of the airships are worth the price, the base troop is ok, but doesn't fulfil a specific battlefield role (doesn't hit hard, doesn't have staying power, aren't cheap bodies, etc..), and only one hero is worth taking. I'd love to know how best to run these guys as they're my favourite (after regular dwarves, but don't get me started there).

Looks like the Gunhauler is dropping by 60 points and the Frigate is also getting a reduction, this might help you.

The gunhauler has terrible damage output, math hammering it with the cannon you get about 1.7 wounds against a 4+ Sv unit on average per turn. It's going to be 160 pts, up to you if you think that's worth it. It is also quite zippy, decently tough and supports other ships somewhat. I think compared to wardens and riggers it's really ineffective and I'd take it mainly only for the pretty model.

The truly good KO lists are clown cars or "Kharadron Overlords and friends starring in Grand Alliance Order". But for an OK, fun list do a hybrid, a bit of clown car and then maybe a bit of dispossessed.

Take some riggers and khemist in a ship so your list is still scary and then add some units you simply enjoy, that's my policy anyway. But it depends on your meta, for example in my gaming group 40k is played at a brutal level, where cheese is the game so obviously in such a case you'd have to make your list suitable.

Essentially, with things like this, taking pure power gaming cheese list units is no fun, you end up spamming a certain unit and it's boring. But it's also no fun to lose all the time.

So, make a hybrid cheese list, the competitive units are your tax so you can use your more fun units too.