In the case of Sorcery the game did go completely dark for almost 2 years. We saw it at E3 2010 when it was announced, and nothing until earlier this year when it finally came out. Its re-unveil had a new art style, and made the game look incredibly generic. But as you mention, no one cares about Move games ... which of course makes Until Dawn an interesting thing to produce. I guess Yoshida promised Sony London one non-casual game or something, lol.
I really just don't think TLG has been canned. At this point the game has to be closer to completion than ever before so why not just release it and recoup some of the cost? As well, given how leaky SCE is I'm sure if it was canned we'd find out in a way that wasn't SCEA's trademarks lapsing.