First, thanks for your patience - I know it's taken longer than you expected to get an answer on this, but we have an update for you.
As you've no doubt noticed, we've been revisiting some older Champions and completely overhauling their models and animations. Some of you have even surmised that perhaps these were the first hints of 'Project Shiny.' And in a sense, you're absolutely right - though, our approach to improving the graphics and art in League of Legends has changed a bit so we're no longer calling anything 'Project Shiny.'
We develop virtually all features and content for League of Legends iteratively - that's why we release a major patch every two weeks, making improvements over time to enhance the quality of League of Legends. Shiny (as originally envisioned) was intended to be more of a massive overhaul. We quickly realized that it would be better for you - our players - if we started delivering those graphical improvements immediately, rather than holding off for some massive update.
We're always striving to improve the quality of new champions and skins, and we're even going back to revisit some older content that needs a touch-up. There are other graphical improvements to be made beyond simply higher-quality models, and in 2012 we'll have some more to give you. Stay tuned!