Seems as if Ron Gilbert leaving has sped up the development process because according to the official site the game is done.

<p style="margin-left:50px;border-style:solid;border-width:1px;border-top-color:#ffffff;padding:5px;border-right-color:#bbbbbb;border-left-color:#ffffff;border-bottom-color:#bbbbbb;">DeathSpank is done! While we still have a tough road to follow as we take the game through final certification steps for XBLA and PSN, the game turned out fantastic! It truly is a great and funny action RPG. We can’t wait for everyone to try out the game which is now coming out even soonerish!

Spotted at: RPGWatch