The rumor that Chibi-Robo: Park Patrol was cancelled is totally false. Well, mostly totally false. Gamespot contacted a Nintendo rep in order to verify the rumor, and got a surprising response.
"Chibi Robo: Park Patrol will launch October 2. The game, which features an adorable miniature robot who wants to clean up the environment, will be available exclusively at Wal-Mart stores nationwide."
We have to wonder why Nintendo has such little faith in one of their own first-party franchises that they're limiting its distribution so sharply. Sure, Wal-Mart is the second-largest game retailer in the US, but do you know who's bigger? All game retailers.