The project was cancelled, but the ideas, both conceptually and programming-wise would surely remain. Miyamoto is very big(as I would imagine most people are) on putting ideas "back in the drawer" as has been referenced in previous interviews.
That being said, upon seeing this it seems clear to me that the motion 2P fighting system is quite parallel to what we are seeing with Arms, initial development could very well have been around the same time for both. Anyone else see the connection?







