No surprises here. The rumors of the 2014 iPad Pro were unfounded when they started, and I called them out as such. Now, only a few months later and half a year before the originally projected launch, analysts (in this case Kuo, but he hasn't been the only one barking up this tree) are backing off of the notion that Apple will be releasing a 12" iPad this year.
It is well known that Apple tries a huge number of technologies, sizes, and materials as part of their standard R&D. It is certain Apple has experimented with a larger iPad, probably even has some pretty late-stage devices., but that doesn't mean they're releasing one soon.
File this one under "Dear Analysts, I told you so." It is just a shame that these obviously false reports get them the clicks that fuel the fire.