In a recent interview with YouGamers, 3D Realms' Scott Miller says that even after a decade of off-and-on development the game hasn't been canned:

Scott: First, we fully admit we're screwed up the development of DNF, and it's now an industry joke. I laugh (and cry) when I think about it, too. Our fault is that we set the bar too high, and we tried too hard to make the game to beat all games. In the last 18 months we've taken a much more realistic look at the project, we've hired a truckload of experienced help, and I personally believe we are now on the right track...finally.

As for the question of Duke's lasting appeal, I believe strongly that it doesn't matter at all. DNF will succeed or fail not because of the Duke brand, but solely based on whether the game is great, or not. The original Duke Nukem 3D didn't have a large fan following, and yet it succeeded. DNF will have to stand on its own just the same.

I think at this point that it's fair to say Duke Nukem Forever is just the name of the next Duke game -- with all the starts and stops this project has had I doubt the game they have now much resembles the game they were calling DNF ten, or even five years ago.

And while the game has still only been officially announced for the PC, Scott added that "The plan is definitely to bring DNF to multiple platforms. We have not announced which ones, yet." I suspect he really means something more along the lines of: It's coming to the 360, but we're still thinking about a PS3 port.

via IGN