"The Legend of Zelda: Skyward Swordis somewhere over halfway done, according to Miyamoto, which means that if IO Interactive were making it, it'd be released already. The downside, however, is that the original "early 2011" release date is no longer going to be met.
Skyward Swordis being designed to feature "very dense" gameplay that encourages players to "go back and replay the game once they finish it." The game has gone back to a broad 2011 release, so you can expect it to drop any time next year, unless we get any severe delays.
I've been looking forward toSkyward Swordmore than any Wii game not calledThe Last Story, so I'm a little bummed about the delay. Still, if it takes a long time to make a game great, I can't really complain." - Jim Sterling, Destructoid
http://www.destructoid.com/zelda-skyward-sword-is-over-half-finished--190121.phtml
Main article:
http://www.pocket-lint.com/news/37425/interview-shigeru-miyamoto-nintendo-zelda
So it sounds like they are just widening the release frame to all of next year now rather than "early" 2011. I'm expecting a Holiday season 2011 release now, maybe summer (SMG2) if were really lucky!
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