String theorist here. Progress has absolutely not stalled. The last big theoretical breakthrough was the AdS/CFT correspondence ( https://arxiv.org/abs/hep-th/9711200 ). This was our Transformers moment. This paper revolutioned the field, has now 20k+ citations, the most for any physics theory paper. It did completely solve the problem of quantum gravity for AdS spacetimes (negative curvature). There are too many things that have followed from this but I can give a few tidbits. For example it was understood that quantum black holes are the most chaot...
The paper you linked about the last big breakthrough seems to be from 1997, so roughly 28 years ago. What do you consider to be the biggest breakthrough since then?
Physics is incredibly precise (only pure mathematics is more rigorous) and everything does indeed follows from a small number of basic principles. These principles are not sacrosent though, more like useful assumptions, and in quantum gravity we don't expect locality to strictly holds. The solution of the black hole information paradox mentioned above is precisely showing that the late Hawking radiation (which is very far from the black hole) is the same quantum system as the black hole interior. This is a manifestion of quantum entanglement which is reali... (read more)