Rockets GM Daryl Morey told Yannis Koutroupis of HoopsWorld that the team never intended to send Royce White to the D-League, despite earlier indications to the contrary, and said he's optimistic about White's situation (Twitter link). The rookie has been away from the team for two weeks, and there's still no timetable for his return, according to Jonathan Feigen of the Houston Chronicle.
When the report that the team would send White down surfaced, it came along with the news that the Rockets were also farming out Scott Machado and Donatas Motiejunas. That seemed to run counter to the CBA rule that an NBA team can only assign two players to the D-League at once. White went on his current leave of absence before the team could officially demote him, and now it appears such a move wasn't in the works, after all.
Feigen notes the team is expected to recall Motiejunas this weekend. That would allow the the Rockets to send White down, but it's unclear whether that would happen. White reportedly has misgivings about how playing in the D-League would jibe with his illness, and the fact that White addressed the specter of a D-League assignment suggests the team at least broached the subject with him.