When I was a TOW crewman in the early '90's (11H), my crew and I kinda kept an eye on the development of LOSAT. Along with FOG-M (fiber optic guided anti-armor muntion) and SADARM (an artillery-deployable anti-tank mine), LOSAT looked promising, but yes, it went unfunded and died. The army continued funding TOW-2A and TOW-2B, and fielded the ITAS thermal sight. I saw a demonstration of a TOW sight (it MIGHT have been ITAS) several years ago at Quantico, and I was impressed. The optics were better than what my unit had been using, and the new system incorporated simulation software in the combat package, meaning troops could train in the field, right up until the last minute, before flipping the switch to arm real missiles. We all know it would be like that in the field, but the idea of not lugging extra equipment around for simulation certainly was appealing!
I'd never heard of this new wonder-missile. Thanks for the info. I'll have to keep an ear out for it.