You've heard this kind of thing before from the PAIN team at Sony and Idol Minds. But this time, everyone wants to believe that they have ironed out some of the delay issues and this will be released as scheduled.
Travis Williams, SCEA Producer of PAIN, commented on the game's blog yesterday:
The YouTube editor is in Format right now along with Ed and Kutso they will be available before Christmas.
That means you should see the new patch and new characters (including a free one) released either this week or next, as PAIN tends to update on Thursdays to advertise new content on the PlayStation Store. It is also worth noting that the game is being updated daily with new PAINLabs content every day until Christmas.