A small update on the Alan Wake Forums has word from Remedy Games CFO Mika Reini on the state of Alan Wake (thanks BrightFalls). He basically states they are continuing to work on the psychological thriller: :

Dear people,

We feel we owe you all a small heads up, and our apologies for lack of updates. This is just part of our psychological thriller, is it all real or imagined... Seriously, yes, we're still here and working hard on getting Alan Wake for you to enjoy. Sure, we've been in development for a long time and if everything had gone perfectly smoothly there probably would be a game out for you guys to play already. But designing a completely new game can be hard, and sometimes you need to take a detour to find the best route forward.

We want to entertain you guys in the best possible way and our team is putting in every effort possible in order for that to happen. That is the way Remedy wants to do things. I'm sure you will enjoy Alan Wake when we're done.

Just follow the light...