According to NeoGaf Nintendo France reports there may have been a misunderstanding:
“Thank you for your interest in The Last Story. Unfortunately, the vocabulary used by this announcement was misconstrued by the British journalists: “No plans at the moment” does not mean that the output is canceled, just that it is not yet scheduled in the calendar. The adaptation of this game could be very long (12 000 dialogues, a record!) and our translation teams are overstretched in the short term.”
So it will just take a while to translate but probably won’t NOT come here. Let’s hope it at least makes it by the end of 2011.
Nintendo could save a lot of time during localization if they just get Nolan North to play everybody.