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Assuming that this is legitimate and not just some low level guy speaking out of turn I think this gives me less hope that the game will make it out in the West in 2011 but I still have to assume that it'll make it over eventually. 

If they really aren't going to start work on the localization at all until they release in Japan then it'll probably be a situation like Xenoblade where signs are there that the game will release at some point but 6 months after release we still don't have official word on a date for the localization release.  Even if they announced the localization of Xenoblade today and only gave it 2 months from announcement to release that would still be 8 months between JP and NA and it might even go up to more than a year between the releases, which makes me very skeptical that TLS will make it here this year.



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