Mario project, that could mean like anything. From a 3D platformer to an RPG, o Mario Tennis Wii.
And Iwata said the Mario team is working on games again, but that was EAD Tokio, the guys who also made Donkey Kong Jungle Beat.
Maybe it's a new 3D Donkey Kong platformer?

I take it he means games like Mario, Zelda and Pikmin.

He said "Mario" project, not Donkey Kong.

Yes, I do.

I think it will be a straight sequel to SMG, using the same engine & assets, which will greatly speed the production time. (A few new suits, new level designs, etc., and maybe a new mechanic or two.)

I think that SMG was generally too successful (sales, critically, & aesthetically) not to do it.

I want a NEW MARIO RPG! A sequel to Super Mario Legend of the Seven Stars. jejeje MIYAMOTO PLEASE!!!!!!!!!!!!!!! JAJJAJ

SMG sequel in 2 years maybe
but before that we could see a Paper Mario RPG, which would be pretty cool

Miyamoto may be working on it, but I don't think we're going to get one.

Off topic: I'd love to see a version of New Super Mario Bros. on the Wii. I know A LOT of people who played Mario games on the Snes and the Nes that gave up the controller when Mario went 3D. A 2D game would be greatly appreciated.

It's not likely that there will be another one. Maybe another side-scrolling Mario, but I don't think there will be another 3D platformer this gen. In the mean time, there should be a new Zelda, Donkey Kong, and Luigi game. Those would be greatly appreciated by me.

Depends how long the wii lasts. Maybe we will see one in another 4 yrs. I see them making another DS one first though.

There will probaly be one more.