It looks like WWE is moving forward with the "NXT Kids" project. A new casting notice on Backstage.com reads like this:
PRODUCTION DESCRIPTION: WWE NXT is casting a pilot for a new wrestling show aimed at kids.
REHEARSAL AND PRODUCTION DATES & LOCATIONS: Production will be taking place monthly on Thursday nights at Full Sail University in Orlando, FL.
SEEKING TALENT: Males & Females, ages 7-14, All Ethnicities
ROLE DESCRIPTION: Announcers & Interviewers: (Supporting) with high energy. Must be personable, lively, quick on their feet and a good talker. Kids should have an understanding/familiarity with WWE, World Wrestling Entertainment programming. Kids will be acting as announcers/backstage interviewers/presenters.

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