This guy needs to make up his mind. Sounds to me like they either felt:
a - saying Milo was not going to be released was being perceived as negative and decided to back peddle
b - Big Pete got a bit miffed given he's talking about this stuff in public soon and they back-peddled a bit
c - the right hand doesn't know what the left is up to
d - all of the above
I have no doubt the ideas and software developed around Milo will definately surface in some form (their animal title for example surely uses some of that stuff) but I'm not pretty suspicous as to what is really going on with this particular title right now and with MS approach to supporting Kinect.
They seem to be trying to have their cake and eat it (not unusual from a PR point of view) with some contradictory statements depending on the message they are trying to convey at each moment - not for hardcore, for hardcore being one such example with this as another.
Try to be reasonable... its easier than you think...
