I am not particularly fussed about this delay (if confirmed). I would of course have been pleased had this not happened, but if the developers or publishers believe that a game needs extra work, content or polish and decide to delay for the good of the experience then it's fine by me. Nobody is forcing me to chose when to purchase a console or game so hopefully this delay does the game a favour, just like with other titles that are chosen to take the same route. It's the beginning of the generation and many developers are under a lot pressure to deliver something at the start, it must be a stressful and difficult time.
As for Watch Dogs, that first reveal blew everyone away, but it quickly lost that magic every time we saw more footage and it was quite obvious just from watching that it certainly is lacking something. If somebody knows what that something is, please point it out to me because I still can't quite put my finger on it.
As for what Sony may replace Drive Club with...well I would love Knack, but I'm leaning toward some sort of super light-weight version of Drive Club/Demo of 'The Last Guardian'