All of it is done with the mouse. There are no keyboard presses unless you choose so. You switch hands with the right button, and use the middle mouse button to let go of grabbed items. Alternatively, you can also use the spacebar to let go of things.
I don't think this is a way of saying that they will completely cast away VR, but more like "perhaps not with this franchise". I also do agree that this would look fantastic in VR. Here's hoping that Miyamoto-san ends up changing his mind!