The game was finished. The game was shelved because Miyamoto wanted a break from making Super NES 3D platform games and wanted to do it on the new platform, the N64.
The next game that was scrapped was Star Fox Virtual Boy, which was a game that appeared as red on a lot of screens. The Virtual Boy was a flop but not as bad a flop as the N64 disk drive. The game was cancelled because of the super poor sales. The one that you are watching now is the one that is the red screen one:
The last Star Fox game to be cancelled was Star Fox Arcade. It was made for the Game Cube and it was a sequel to the 3rd and 4th Star Fox games: Star Fox Adventures and Star Fox Assault. Somehow it was assumed to be scrapped. Here is the only picture, which is Japanese. Yep, it's from Japan. Known to man.
Did you know that Star Fox Adventures started off as a game called Dinosaur Planet on N64. Rare removed the game but they put the main character of Dinosaur Planet in the game Star Fox Adventures.
In the Legend of Zelda Majora's Mask if you collect all the masks, look on one of your rows you'll see something pretty cool. If you look at the first mask of the row, it will show a fox, the second row a falcon, a rabbit or a hare, a toad and a worthog. However, these equal all of the Star Fox game, which are Fox McCloud, Falcon, Pippy and Slippy. The worthog also joined Star Fox until he betrayed Star Fox's father.