I hate to break it to the guys who doubt BG&E2, but Michel Ancel confirmed that the game was still in the works at last year's E3. Here's the interview where he said so in an interview with GameTrailers.

http://www.gametrailers.com/video/e3-2011-rayman/715163

(Go to the 6:00 mark)

He wants the technology to match the vision of the game, so he's waiting for the next-gen consoles. Holding your breath is still a good thing to do, but the game is far from dead as far as it's creator is concerned.