Technically MML3 is still in the early development stages. Capcom wanted to see an initial build (~30% complete) combined with a lot of fan input before they "green-lit" the rest of the production, so that'll probably get shelved too.
Capcom died when Infaune left (AKA Japanese Jay Bird)
This is the most depressing news I've heard in some time. I don't believe I'll be able to take this lightly and beyond that.. the idea of MML3 not seeing the light of day.. that is quite harsh. I think the appropriate emoticon by today's internet standards would be D: or TT~TT
I wish old companies would just release some classic games on the XBLA like they do for the PSN and WiiWare. I'd gladly buy old MM or FF games if it meant some achievements and some incentive to replay them. Sega does it, I can't see an easier cash in Capcom.