That is disappointing. Last I had heard it was waiting for them to finish redesigning the controller GUI, but local co-op was not specifically mentioned.
I can understand the two main limitations, namely screen realistate for 4 people and competitive questing.
When all 4 players remain in the same area it is easy to display them all, but as soon as you split off for whatever reason the screen must be quite large to accommodate that.
As for competitive questing, it becomes quite difficult when the other player can literally see everything you see.
These are quite significant problems to overcome if they want to do a console release.
All that being said I would still love a solution to these problems as playing co-op with my girlfriend on the couch together was a great experience.
