Newsarama has a summary of Grant Morrison's panel from NYCC, with some info about the 'We3' movie.
A fan asked Morrison if the movie was to be live-action or animated.
Morrison indicated that it would be coming out as a live-action film with CGI animals. "Yeah it's the real!" he said. He said that he wrote the screenplay for it two years ago, and there was a bunch of scenes we had to cut from the comics that found their way back in the film. Morrison said that the film has been with New Line Cinema for a couple of years and that it's being slowed down by New Line's woes, but that We3 is still "a really big deal on their slate" and "they've been through like 16 directors but they're looking for the guy" who can really bring the feel of the comic to the screen.