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Not Kid Icarus (thankfully after those terrible models) but some info as popped on GAF.

So one of their Wii titles is a casual game. The other one is a 3rd person shooter which takes place both in the air and on the ground. Unless they are going to make Kid Icarus a casual game, they do not have such a game in development. Nintendo might have denied their request.

http://www.neogaf.com/forum/showthread.php?t=357226&page=2

Mmmh, 3rd person shooter in the air and ground??...... Turrican????