Yes, it was supposed to be out early 2009. However, they released Virtual Families about 5 months ago, maybe 6.
I hear that they are still working some of the kinks out of VF on the Iphone. Since they are a small company, it's mostly one thing at a time for them.
I would not look for the release until 2010. But, don't hold me to that. I am just guessing, of course.
No, It is not out yet. I am just dying for it to come out. I love the Virtual Familes and Villagers.
I'm a big time management fan. I hope it comes out very soon. Sometimes the link shows a percentage of it being done and sometimes it doesn't, but here's the progress link: LDW