that article is missing a "yet" in it's tag line
I don't think they're gonna cancel this game. As much as Square-Enix loves pouring money into ill-conceived ideas or games nobody asked for (KH Coded), they're not exactly known for flat out canceling things they've hemorrhaged so much time and money into, especially considering that the Final Fantasy name on the box will equate to good sales regardless of the actual quality of the game. This isn't going anywhere.
edit: Also, I notice that THREE people now have posted the same story (albeit from different sources) regarding Yoichi Wada's tweet. This thread isn't like the support thread for Aali's driver; it's only three pages, not THAT hard to read what's already been posted. :/