http://www.neogaf.com/forum/showthread.php?t=373631&page=29
Scroll down to RobbieNick's first post.
Seems the information was unveiled on 4 Guys1up, though it was only mentioned in passing.
The pros are that keeping it small will keep it simple, minimize the story filler.
The cons include a low likelihood of being a WiiWare game (they only mentioned PSN and XBLA, though they didn't confirm or deny anything, i'll stress), as well as the game being smaller than it could have been, as well as not being able to really restore Sonic to greater prominence
Monster Hunter: pissing me off since 2010.