Carol retired from Adobe and type design in the spring of 1999. I have a photo of her (with me and Christopher Slye) taken on her last day at Adobe. She moved a bit north of the Bay Area, and set to work doing textile-based design, and I think some jewelry design as well. She is not yet ready to show any of that work in any highly public way.
Carol left Adobe primarily because the company just kept on growing and she just isn't comfortable in a large corporate environment. Working on her own seems to be much more her pace.
Although she has ceased doing any new typeface designs, Carol does still consult and offers direction on extensions being done to her previous Adobe typefaces. This continues to be true; I have recently been internally circulating a proposal to add some additional weights and language support to one of her typefaces, and she expressed her willingness to be involved and her opinions on the specific proposals.
Regards,
T
Thomas Phinney
Product Manager
Fonts & Global Typography
Adobe Systems