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I'm still hoping for local co-op, as that would be awesome, but I think it is only 2 player over LIVE.

I've found a number of sources that said the multiplayer was cut from 4 down to 2, but only one hints at it being only over LIVE.

http://www.worthplaying.com/article.php?sid=52756
Shared experience. Conquer the world of “Too Human” alone or with friends through advanced, online multiplayer co-op gameplay through the Xbox LIVE® service.

Edit: Ugh ... I found the article: http://www.cinemablend.com/games/Too-Human-Finally-Gets-A-Release-Date-Loses-Offline-Coop-10398.html