I just came back from Berlin an hour ago. The castle will be definetly rebuiled. As far as I know, the planes are fixed and aren't stopped due to the economic crisis. The installed a building called "cube" at the side of the building site, which I visited today. You get information there about the history of the castle. They also have a model of Berlin 100 years ago, so you can get an idea how everything was situated. They also show how they plan to rebuild the castle. It will contain historical parts but also modern aspects. The plans are to use it as a museum and as place for concerts and events. At the cube they show examples of the expositions they want to show in the museum. And at the roof there is a nice cafe and restaurant with terraces so you can have a look how the work is going on.
Right now they do some archaeological research, as far I could see. If some of you visit Berlin, I can recommend to visit the cube.