I have no clue what is this GPG thing about!

Well, then you probably don't need it :) But anyway you can read something about it on Wikipedia.

Why was the service terminated?

The usage of it was fairly low and there are better alternatives these days anyway. You can use Virtru or ProtonMail; or many others.

So is this super secure kind of email?

Absolutely not. The email can be intercepted on the way to your alias. And there are other constraints. But your Xmail provider will not be able to read your emails, that's for sure.

Is this project based on opensource software?

Yes, it is built on Ubuntu, Postfix, Dovecot, GnuPG, Apache, Bootstrap, MySQL, gpgit and many others.