According to Joystiq, Nintendo's Beth Llewellyn had the following to say after this years E3 get-together.
What’s the status of Project H.A.M.M.E.R. or Disaster: Day of Crisis?
Disaster is still in development. Project H.A.M.M.E.R. we’ve sort of shifted resources off that title. But Disaster is still in development. Again, you have to remember, E3 is one small little blip in time and we tried to focus on a few key titles. Rest assured, there is a lot more going on behind the scenes at Nintendo. You know the company, and we always have stuff going on …
Are you talking about the reasons why H.A.M.M.E.R. has been cancelled?
Shame, I know quite alot of our readers were looking forward to this one, maybe Nintendo should release the 2006 demo onto WiiWare? We wish.