There's some of that in play too. I did underestimate how long certain things would take, but I think the biggest reason for such a massive delay is that I've been moving the goal post further. The original planned release would have followed F&H1's example. That game was VERY barebones at release. Only after many updates that game took its somewhat final form. When I decided to delay Termina I figured most people who were waiting for the game have probably only witnessed the first game while it has been more or less a complete package. I think those people would've been disappointed in the barebones version of Termina. Even those who would've understood the situation would've felt a bit disappointed and first impressions last long.
So Termina has been growing under the curtains and it's now a lot more fleshed out experience. Comparable to F&H1 for sure. The game has been in testing for a couple of months now, so it won't be far off.
Sorry for the delays, they do suck, but the game is better for it. Hope the game will deliver once it's finally out.