They basically killed it off in what was going to be its original form. They've already established characters and events in their prelude video, if they go ahead with it then that all has to be reworked, and it looks to be too large in scale to fit into 30 minutes. They could possibly make it into parts but Paramount could probably go against that as well. So as of now unless they somehow get permission from Paramount to proceed in its original form its going to need to be massively reworked or just cancelled outright.
Pity as the cg in the prelude video was really good, even though a lot of the Camera Angles on the ships looked very Abrams inspired.