One of the features that we expected was offline use ability.

There are times at events and stores where internet access is unavailable. Even where it is, people often do not want to pay for the data the file uses each time it downloads images.

is this functionality scrapped, or can we expect it in a future update?

Since we have no idea what is actually on the "to-do" list for the app developers, we don't know if this is something we can expect or not.

Also, this has been discussed in this thread. As I said there, you have the ability to "Share" your list as a PDF which you can download to your mobile device prior to any event. Essentially, this is "offline mode".

Considering that the APP is just a web interface to the website, I believe an offline mode would be imposible until you now..they actually develop an app.

I really wanted offline because squad building is fun, and I used to pull up my squad builder to kill time on the train and other times where I often didn't have internet so I couldnt do much else.