Larian Studios' Sven Vincke is still not quite ready to reveal what Project D and Project E are, but he does talk about both projects a bit on the latest Larian Studios status update, as well as talking about fan ideas submitted following the last update, getting David Freeman in on their games, and the currently ongoing Steam sale.
Now I read on http://www.rpgwatch.com, one of the two sites I check in the morning to see what the competition does (the other being the madness that is rpgcodex) that Moriendor (whose opinions ring a personal note as he visited our studio in the early days to help us out with testing the first Divinity) thinks we're going to make:
a) A Real sequel to ED full price game to be released on all major platforms
b) An Isometric low budget spin-off to possibly only be distributed digitally
c) A Browser game of some sort
d) And finally a multiplayer-focused title, either an MMO (seems unlikely that they would invest in a full scale MMO but maybe a browser MMO) or something with an emphasis on cooperative gameplay
He concludes with (that would cover all of the bases as far as the current trends in gaming are concerned).
So to respond - Project D is none of these and project E, which I think I already mentioned has a top-down camera, can hardly be called low-budget. On the contrary, it makes us bleed, but we have high hopes for it