they said they would like it at launch, I dont think they actually went so far as to promise it.
I actually just had written something for another forum a little while ago, so I'll just paste that here.
Yes, Smash was announced at last years E3, but there wasnt actually anyone working on it at the time. At that time last May, Masahiro Sakurai, formerly of HAL Labs, was appointed as Director.
Fast forward to Nov-Dec of 2005: It is revealed that Nintendo has formed an entirely new studio, under the care of Sakurai, solely to work on this one game. I dont believe this studio's name is public, but they have access/assistance from HAL. But it is accurate to say, that this game is NOT being created by HAL.
Also, the assumption is that this all means that work on it isnt all that far, and thus they currently havent brought it up to a point where it is ready for show. Sure, they'd like to have it for launch, but it seems highly unlikely.
If you'd like to read for yourself.
http://cube.ign.com/articles/667/667525p1.html
http://cube.ign.com/articles/660/660408p1.html
http://revolution.ign.com/articles/673/673532p1.html