Playstation Home Is Still A Major Priority For Sony.

[quote]
"It's been a long road," Pete Edwards said, according to Edge Online. " We've proved there is a market out there and we've got a lot of people that spend a lot of time in [Home]. It's not a priority right now but there is a business model there."</blockquote>

His words, however, were apparently misquoted according to Playstation Home's community manager on the official Playstation Forums.
[quote]
"Allow me to put your minds at ease about this recent press. The coverage of what Pete Edwards said at the London Games Conference was not only a misquote, it was a misreprentation of what he actually said.

"Edwards was saying that monetizing Home was not as big a priority as building a great platform, with a compelling environment and a strong community. Home is still a top priority for Sony and will continue to release quality content and provide a positive experience to our users.

"And yes, we will continue working on fixing bugs, login problems, and other user issues."</blockquote>

So there you have it. Playstation Home still being worked on by Sony. Worry not.