I don't know who supposedly confirmed FFIII for the WSC was canceled, but Square Gamer claimed it was confirmed (it didn't do the confirming). All I know is that the FFIII page was taken down. I think Square instead will announce FFIII for the PS. Being able to play all ten FFs on a single console (eh, supposedly Anthology doesn't work?) is pretty nice.
Also, I'm trying to figure out if FFI and II are really going to be released separately or as a compilation (for purposes of game coverage). Ok, so they're remakes, but I still think it's a rip to sell them separately for 30 bucks each.