Looks like he is:
Irrational just released a new video called “Hunting the Big Daddy”. The game is really looking great! The graphics and level design are just beautiful. The Art Deco style really works for the setting. The weapons and character models, as well as the plasmid effects look great as well. The Little Sister hops and skips around, which is really quite eerie. In fact, all of the animations look great. The gameplay looks like a slightly improved System Shock 2, which is to say perfect. Overall, it looks like the game is practically finished. So hopefully the delay is just to add some finishing touches. In the mean time I will be playing some SS2 until they finish this game up. You can download a copy of the video here.