I know it was reported to have a "confirmed" 2010 release on XBLA but now it seems, as it is 2011, that that piece of information was not true or that shiitake has changed. Has Anyone heard anything? I really want to play this game, and hope beyond hope that it has not gone to development hell.

No, it's still alive. Phil Fish on twitter mentions some info every once in a while.

What's his twitter?

I don't remember it having a "confirmed" 2010 release. It's been looking likely to see release in 2011, but who knows. The game certainly isn't dead and I do hold out hope that we'll see it in the latter third of the year.

Yeah, it was on PAX this year, duders!