It's not that surprising that the game is only half way done and probably wont be out until next fall. I mean, look at what the E3 trailer and all we see is basically one little area, that Aonuma himself has said will even be different from the final game. Not to mention the music uses from the trailer is one of Twilight Princess promotional songs showing that the trailer itself was basically thrown together as quickly as possible and they didn't even have anything new ready to use in time.
On the topic of what else will be ready before Zelda. Like others have said, Rhythm Heaven will fill in the gaps since the DS game did well in America and Europe so the Wii version will also be released as well. Pikmin 3 also has a good chance since EAD 4 hasn't released anything since NSMBW in 2009, and they did the New Play Control Pikmin ports before that so Pikmin 3 could be ready at any moment for all we know. Not to mention the Fatal Frame 2 remake will make it over here as well since Fatal Frame 4 was SUPPOSE to be released wordwide, but since Tecmo refused to fix the terrible glitches in the game, NCL was the ones who refused NOA and NOE to localize the games in order to punish Tecmo for doing a sh!tty job. I'd imagine after the Fatal Frame 4 disaster, Nintendo is going to make sure Temco removes all glitches from Fatal Frame 2 before the games even released in Japan meaning it's guaranteed to get a worldwide release this time.
On the issue of Xenoblade and The Last Story, I still feel both games will make it over here but it will take a while. Both games are huge RPG's with thousands of lines of text and dialog to translate. NOA has never had to localize anything of this size and scoop before which is why both games will take a while. Chances are pretty good that NOA has been working on Xenoblade since it's release in Japan last June, but because of all the text and voice work it's taking forever to translate and probably won't be ready until the summer at the earliest. This is why The Last Story probably won't come out in North America until Spring 2012 at the earliest since that game still hasn't come out in Japan yet and is already looking to be just as big, if not bigger in text and dialog then Xenoblade.
Oh yeah, and don't forget that Monster and Next Level both haven't made anything for Nintendo since Exitebots and Punch-Out!! in 2009, so I think they's a good chance both studio's will have something ready for the Wii in 2011 as well.