I don't think it will ever come out. I also don't think it will ever get officially cancelled. We might get notice that it's "on hiatus," but I kind of doubt it.
It's kind of a tragedy that they didn't release the one on this [http://www.youtube.com/watch?v=NHU3sq8Wfjs] engine, though. Those graphics are distinctly 2001, but the trailer actually looks like a pretty good, fun, entertaining game. It looks like a game I would enjoy, which is amazing, because Duke Nukem as a franchise has never held any appeal for me, and I don't like Duke 3d. Everything they've released since then reminds me of Prey (a game made by the same company), which is bad because Prey was a very pedestrian, forgettable game.
Although when it does come out, I think that pedestrian will be an excellent description of it. Forgettable it will not be, in the same way that Daikatana isn't forgettable.