Here's the latest I've found:
http://gdrinnan.blogspot.com/2012/11/not-even-broken-right-ankle-is-able-to.html
Sounds to me as if wants to play in the WHL but not for the Seattle organization, and I don't really blame him.
I prefer that top Canadian kids take the CHL route in almost every case, but if his rights aren't traded to a respectable organization, heading to the NCAA is smart.
I think college hockey is a very legitimate possibility with him, unlike some other kids that use it to manipulate their draft position.
He reportedly does very well in school and when you listen to him speak, read quotes from him, or even look at his Twitter, it's safe to assume those reports are correct.
If he does choose the NCAA route, I wouldn't be surprised to see him try to accelerate his schooling so that he can play as a 17 year old freshman during his draft year.
It's rare (off the top of my head, I can only think of Jonathan Toews and Dillon Simpson, but Zemgus Girgensons also tried and failed because he had the added hassle of completing his Latvian schoolwork too), but it'd help his draft stock and he certainly looks to have the talent required to do so.
As for where he'd go, I'm sure every top program is salivating at the thought of getting him (with the exception of the Gophers, of course).