Ghostcrawler tweeted a bit of information in response to some of the angst over new models only being 25% done (people are not happy they're only that far along). In a series of tweets, Ghostcrawler says:
Now the important thing to remember is that last sentence: "shelved does not mean cancelled." There is still every possibility these things are going to happen, just not anytime soon.
Companies commonly shelve things when there are more important priorities for departments to work on. With a graphic / modeling heavy task like redoing all the character models for WoW, that takes a lot more priority than giving people new dances. So personally I welcome this news, I'm glad to see that Blizzard is putting things in this priority order.