Seemed almost inevitable.  The longer this takes to come out the less likely it will meet it's rabid expectations.
http://www.metro.co.uk/tech/861419-the-last-guardian-delayed-along-with-ico-shadow-of-the-colossus
 

The Last Guardian director and game designer, Fumito Ueda, said: 'I announced at last year's Tokyo Game Show that the release timing of The Last Guardian which is currently being developed would be holiday 2011.'

'However, to provide more challenging and better quality of content to users and to fulfil First Party Studio's obligations, I decided to postpone its release timing.'

Mr Ueda also announced the re-release of ICO & Shadow of the Colossus at the Tokyo Game Show in 2010.

just because this is my most anticipated title, I'll wait to see this news from the games media before believing it :(

What about Bioshock?

He didn't say it would be released in 2012.  He just said it wouldn't be released in 2011.  I'm predicting Fall 2013.  Sony has to have learned from Gran Turismo though that giving a developer all the time in the world does not necessarily mean that you'll get a superior product.  I mean, the GT team said that they kept postponing it and postponing it to "make it a better experience", but really, how much better do you think it was in the long run for having been released about 3 years after we were told we would get to play it?  I'm not saying,  "release it now, bugs and all"...just maybe, set a release date and go for that goal and then at least you have some parameters in which the game will get finished, and you don't end up tacking on a kart racing mode and a bunch of features that people will never use anyway.