We should really start marking every delay with a "happy delay" or "sad delay". Mercenaries 2: World in Flames being pushed to 2008 is a happy delay. We've already discovered that this holiday season is already so disgustingly jam-packed with games that we'll take any delays we can get -- unless it's something major we can no longer wait for. Merc 2, not so major, gives them time to polish -- happy delay.
EA hasn't given an official reason for the delay, that's fine. Add some more explosions, get the AI working properly -- whatever, take your time Pandemic, no rush. The game is expected for PC, Xbox 360, PS3 and PS2. As long as Mercenaries 2 brings the destruction of the first one back with more polish, it'll be a nice mindless title of joy in the vein of Crackdown to get us through early '08.