ProWrestlingTorch has confirmed that the 30-man Battle Royal WILL happen at WrestleMania, and it will feature 15 of RAW's superstars, and 15 of SmackDown!'s superstars. However, the match will not be televised on Sunday Night Heat, or the WrestleMania PPV itself. The match is going to be filmed and will only be able to be seen on the WrestleMania 21 DVD, which is scheduled for release in the months following Mania.
Although Carlito returned to the ring on SmackDown! this past Thursday, he is still three weeks away from a full recovery. This is why his match with John Cena was short-lived, and why he didn't endure many spots which could further aggravate his shoulder injury.