This week's Japanese Weekly Famitsu features an interview with Super Smash Bros. Brawl director Masahiro Sakurai where he confirms the game will release in 2007. In a translation by IGN.com, Sakurai also reiterated that the Wii remote would not be used during normal play.
Sakurai said his time is being spent exclusively on the development of Super Smash Bros. Brawl. "I feel the need to fully take on the responsibility when taking on a job," he noted. "This has become even more important since becoming a freelancer. If you take on two projects, you definitely won't be able do a good job with a game as big as Smash Bros. Brawl."
Sakurai resigned from HAL Laboratory in 2003, where he created the Kirby and Smash Bros. franchises. Nintendo president Satoru Iwata, who previously worked with Sakurai at HAL, convinced him to return to develop a Smash Bros. sequel. A new development studio was built from scratch for the game. More info can be found here.