Anyone thinking the cancelled comment means this has to be about Silent Hill, Ito has worked on several cancelled games. Silent Hill games are included (not Silent Hills as he's confirmed he's never did anything or was ever contacted about Silent Hills before, but he's posted concept art he did of SH games that never got into full production before), but I know his favorite work he ever did was on this one Russian space-horror game that was not a Silent Hill nor a Konami game, and that one getting canceled really bummed him out.
I think he's done work on more cancelled games than released games at this point, thus his comment, rather than it being a Silent Hill tease. I'm not saying he couldn't be working on the Silent Hill game currently in the works, just his comment I don't think was meant to mean that or even tease that. I think he just means what he said, he hopes the project he's currently attached to doesn't get cancelled again.