Is crytek releasing a 32 bit version of Cryengine 3 or are they just screwing over lots of their fans??

highly likely they won't. they're not screwing over their fans, it's rather their message of "hey your OS is effing old, spend some time and effin upgrade it to something modern that can run crysis already"

If they aren't releasing more patches... I doubt they will release a new editor for an older operating system mode. They probably are using 64bit for designing the game in the first place, I think I saw an article they were talking about how its more efficient for game designers.

F**k it. Just use the Crysis Wars Editor.