Thanks to aibo_ac7 on Twitter, we now know the release of Kingdom Hearts: Dream Drop Distance in Japan is March 2012! That is only three months from now!
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Edit 1: More props to aibo_ac7 with a confirmation that that Axel, young Terranort (with his face hidden under a familiar black hood), Vanitas, Joshua and Shiki are seen in the trailer!
Edit 2: Thanks to forum administrator Shamdeo, there appears to be an absolutely adorable Wonder Nyan plushie available at the event!
Edit 3: Xion, Roxas and Rhyme's appearances have been confirmed!
Edit 4: Much gratitude to aibo_ac7 for more gameplay details. Also, Tron: Legacy is in KH3D, Maleficent and Pete have returned and Axel now goes by Lea.
Edit 5: Thanks to sqexgal, we now know that when the Drop Gauge reaches 0, the character and Dream Eaters must sleep. Also, the Reality Shift ability in the Musketeers world is called "Wonder Comic". The characters appear at random and you can do a powerful finishing attack with the three musketeers.
Edit 6: Thanks to Toma_Kisaragi we have a better image of the VJump scan featuring Joshua and Beat from The World Ends With You!
Edit 7: Also according to sqexgal, Axel/Lea appears near a castle, a younger form of Xemnas is shown attacking Sora, and Sora appears in the Three Musketeer world in the demo with Mickey not recognizing Sora, but with knowledge of Keyblades and other worlds. They discuss various worlds like Tron: Legacy and Prankster's Paradise.
Edit 8: More info from sqexgal tells us that Mickey, Donald, and Goofy are guards of Princess Minnie in this world, which is how it was in the movie. There is a scene where Sora, Mickey, Donald, and Goofy are riding in a carriage and it gets ambushed, starting a battle.
She also provides additional information on the Drop Gauge. When Sora and Riku enter a sleep/dream state when the Drop gauge runs out., they switch automatically. You can also manually switch them by pressing Start to open the menu, then hit the "Drop" button.
The Reality Shift "Wonder Comic" in The Three Musketeers world will have you drawing a picture on the bottom screen. You can also obtain Drop Points to upgrade Dream Eaters or convert it into munny. Drop Points are gained from battling enemies.
Edit 9: We've also got an image of Square Enix's booth at the event directly from the Official Kingdom Hearts Blog via KHxInfo!
Edit 10: Riku's demo also takes place in the Country of the Muskateers. He catches a glimpse of Pete at the opera house, and his level begins upon being abandoned like Sora. He drops down to the stage of the theater where Pete, Mickey and the others are practicing something, and chases the Beagle Boys. Meanwhile, Minnie discovers a treasure chest backstage! It appears that Pete has lured everyone in a huge trap! The Beagle Boys sneak behind the equipment backstage as Riku continues the chase, leading into a new map plagued by poison. The opera house has two floors, with the top bearing the treasure chest from earlier. Riku's Dream Eaters were the Yagi Horn, Frog Chef, and Poisonous Lizard. Sora teams up with Wonder Nyan, Neko Cat, and Zou Elephant. The Drop Gauge remained at 0 during the entire duration of the demo.
Edit 10: As with past Jump Festas, asides from the regular trailer at the Open Theater, there is also a longer one playing at the waiting lines for KH3D and Theatrhythm. There are plans to get the trailer up on the site at the beginning of next week. Thanks to SQEX_gal and ArikaMiz for the info!
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