There's no confirmation of any kind, but any news is good news, in my opinion. Usually, Nintendo Power doesn't print stuff without some sort of validity behind it. It could simply mean Nintendo is in talks with the developers now.
I'm not really sure how well it could be controlled with the touch screen, though. The original game used two analog inputs, but the DS only has one. In any case, Katamari Damashii is a great game, but it's kind of lacking in replayability.
I wish there was a free rolling mode where you could pick the stage and had no time limit.