Philip K. Dick is best known for his science fiction writing. But he did dabble once in the fantasy genre. The result was “King of the Elves”, which Disney announced would be one of their 2012 animated feature releases. Slashfilm just ran a story that the movie has been canned (see also the comments of this TAG blog post). Although a Google search still reveals the preview page, there is no longer a link to that page from the main Walt Disney Animation Studio site.
Disney was originally partnering with Jim Henson Studios to make King of the Elves and it would have been low on CG effects and high on puppetry. Then the project was given to the animation studios as they transitioned from hand-drawn to cg animation. But now that there is a desire to make WDAS known for hand-drawn animation, King of the Elves may not be the right fit. I’ve heard that the film is officially shelved and the director and producer are either gone or moved to other projects.
I would not be surprised if the “King of the Elves” story got made by one Disney division or another in the future, (Pixar?) but it looks like it won’t be Walt Disney Animation.