Stormmedia, as I understand it, was simply practicing his 3D skills and wasn't really planning to add those higher resolution models he made into the patch. I agree his Cloud looked quite different, but again it wasn't intended to go into the game, and even if he were, he specifically stated it was just a rough WIP.
As for the status of the new patch, it's apparently finished but just hasn't been released. But the first post regarding a new release was way back in October if my memory still works. It'll come out eventually, I don't think it's been scrapped.