Sony's confirmed via Twitter that LittleBigPlanet Karting, pictures of which were recently leaked by a Future Shop employee after a PlayStation event, is indeed happening. They didn't reveal any details, though their announcement strategy is likely going to change now that the dominant attitude seems to be "What about Modnation Racers?"
Valid question, sure, but Sony will probably do an adequate job differentiating the two franchises. Little Big Planet Karting will no doubt offer a much greater degree of creation and customization, so there's that. Rumor is it'll also support Move and come with a wheel peripheral like the one packed in with Mario Kart Wii.
But will LBP creators Media Molecule be at the helm for this one? We're waiting to hear on that and the rest of our questions before we pass any judgment. You, on the other hand, can let us know exactly what you think right now in the comments or on Twitter.