The scene (along with others, he says) will be on the DVD, but not in the movie.
I think PJ has learned his marketing lessons well. He knows his target audience. He is making sure he has left certain scenes for the extended DVD; scenes the true Tolkien fan looks forward to. We go to the movie (often multiple times), we purchase the DVD or video because we can't wait 11 months for the release of the extended DVD and then we purchase the extended DVD to see those precious scenes that were not in the original release. Pretty clever, I would say.