You're right, it does appear that a change in 3.5.0 has stopped the Real-time Editor from working - likely due to the changes made to the Source View for the new Syntax Highlighting feature. It's not offering any obvious error messages, so can't tell at a glance what the issue could be.
Unfortunately as this is an unsupported plugin we can't say when or if it will be fixed, so in the meantime the listing on the Atlassian Marketplace has been updated to reflect that the current version is only compatible to 3.4 not 3.5.
Note also that the plugin source is available on Bitbucket, if someone else wants to have a go at fixing it. I will endeavour to take a look in case it's something simple though!
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