WarHawk -- destined to go the free demo route a la Gran Turismo HD? [update 1]

This is a rumor, so let's not get out our pitchforks and torches yet, you crazy radical radicals! Seriously, the site originating/reporting on this rumor is called the Rumor Reporter. Anyway, it should still be considered, since the game, WarHawk, has had absolutely new news since that demo from way back when at that whatever show. You know the one. You also know our rule of thumb regarding these rumors: an anonymous source from high up in whatever says, etc etc.

WarHawk has stalled completely in development. Infighting and lack of direction led to a halt of the game... but... only as a major retail release. There are still plans for taking what's been done on the game, finishing up whatever loose ends exist currently, and releasing the title as a download at the PS-Store. There has been a little controversy on this, as David Jaffe refutes this rumor, but only refutes the idea WarHawk will never be completed, not that it won't turn into a PS-Store item. Take this as you will, but if it's true, that's another high-profile title that's getting kicked between the legs and left to cry in the gutter. Sort of. We can still play it, eventually, either way.

[update: Rumor Reporter ran a follow-up and it seems WarHawk for the PS3 is indeed turning into a PS-Store release, but will probably still feature 16-person online dogfights. Cool.]