I'm in Canada, and I am a Fed Gov't employee.
The Gov't is completely hamstringing the store by it's endless Bureaucracy.
Why? The Gov't is very controlling of all media through it's agency called the CRTC (Canadian Radio and Television Commision). Otherwise known as the Culture Police.
One reason the store is being delayed, is that complication exists with a special revenue-generating tax being collected on writable media, like flash memory and CDs/DVDs. It's the CRTC in action.
The CRTC collects the revenue to supposedly reimburse those Canadian Artists whose income is being hurt by illegal downloads. How they decide who gets what, out of that fund, depends obviously on the Artist's friendliness with the Gov't. Get it?
So, if there exists a legal way to download songs, there is no reason for this tax to exist anymore, and it rightfully should be ended. However, those friends of the Gov't are putting up a big fuss about it, because away goes their annuity.
Fact is, these canadian artists haven't had any success in years, and this tax is their gravy train.
There are other problems Apple is having, like how to ensure that French-Canadian artists get special treatment, (according to the CRTC's rules). English language-only and French language-only websites, things like that.
In addition, the CRTC want to show favoritism to home-grown companies, so they restrict the ability of foreign companies to do business.
It's extremely socialistic here, in case that point escaped you. It's so hard to do business here because of Gov't involvement in EVERYTHING CULTURAL.
Therefore, as I said, the problems Apple are having here are political-based, not technically-based.