Probably every single person was angry when Kid Icarus was a no show - IGN kept on making us believe that the game would in fact be present, though it wasn't. When the website asked Miyamoto where it was, he told us that he's not the producer of the game, so he can't talk about it... So, it wouldn't make sense if he said he's not the producer of a game that doesn't exist, so it's safe to say that the game is indeed in development.