I think the canceled rumor was because it kept getting delayed later and later. It's just god old SNK for you. I remember having to wait almost a full year from the original release date for SSV to come to Xbox.
Dude, I hope it really does come out, that would totally rock. I hope they price it attractively to boot, competitive like against the Metal Slug Anthology for the PSP.
I know MSRP is $29.99 at the moment, but one can hope.