"Those 2 words w/o .com WERE trademarked."
No, they were not registered as a trademark, and the status information you posted is clearly that of an application which was never registered.
There are lots of things in the uspto trademark database, not all of them are, or ever were, registered trademarks. You seem to be looking at a record for an abandoned application.
What kind of application was it? Was it based on use or intent-to-use? If it was an ITU, then was a statement of use ever filed?
"can I now create a product name it this and register a mark??"
For all we know, that's what THEY thought before their application was refused registration and they failed to respond to the refusal. Are the two words generic or descriptive of the goods or services for which you intend to use the mark? Are the two words obscene?
They may still be around, and they may still have a claim to the mark. Just because they may have abandoned their registration application does not mean they quit using the mark.
Please consider the questions above to be rhetorical indications of the kinds of things an attorney would want to know. I'm not suggesting that you answer them.