@chiaram,meckerdv
Thanks for the info.
@meckerdv
'click at ORT AENDERN'
I couldn't find ORT AENDERN on the web page?

So, go to "detailed forcast" > "local forecasts"
http://www.meteoschweiz.admin.ch/web/en/weather/detailed_forecast.html

I agree with Meckerdv that there are plenty of alternative trails that will get you from Chamonix to Zermatt. As a matter of fact, we took a few along the route either by getting lost or by finding them on the maps we bought in Chamonix. The ones in the book are merely suggestions. They are not the "official" trail as I don't believe there is one "official" trail. The mountains are intertwined with many beautiful trails....
The danger is not always what is on your trail...it's sometimes the conditions above the trail. Things that you can't control. So just be aware of where you're going. The avalanche dangers may be passed by the time you get there. Don't just check the weather....@meckerdv, is there a website that can be checked for avalanche warnings if there is more snow?
I do think this is highly unusual on the trail. From what I remember of the trails, I don't think we would have been in any danger of avalanches above us. We may have been in danger, during the heavy snows, of getting lost or of hiking/slipping off the trail and falling down a steep slope...but that's why we chose lower routes or public transportation.
I wouldn't miss the trip. There are so many routes, and it's all an adventure. It may likely be less busy due to others cancelling, which may be a good thing. Just stay alert as you should in any case. Bring warm clothes, as you should anyway. Buy your maps, follow the markers and have fun! (oh, one thing we noticed...on the sign posts, the yellow directional signs are quite accurate in where they are pointing....there can be subtleties in the directions...watch for trails that might be running just alongside a road, for example...the sign might look like it's pointing in the general direction of the road, when in fact, it's pointing slightly to the right of it and down the path...be aware!)
People who are able to read and interprete maps correctly (I learnt in this forum that there are not many of them) can either buy them or load them down and print them with no costs:
http://map.geo.admin.ch/?lang=en (official map, any scale)
http://www.mapplus.ch/ (less good map, but with all bus stops (with links to timetables), shops, huts and some hotels and restaurants)
http://map.veloland.ch/?lang=en
http://map.wanderland.ch/?lang=en

@meckerdv, the maps are really good, thanks. We actually called couple of cabs this afternoon and they all said it's ok to go. So we have decided to give it a try. We know the alternatives so will be flexible and of course won't mind some public transportation when needed.
Thanks again for all the information from everyone. We will update when coming back.

By the way, something that I never thought of, because we tend to focus on the hiking part for this route, is that it's possible to go skiing in Zermatt. Three of the young people we met on the route, rented equipment and went skiing on one of their Zermatt days and said it was glorious. Had I known, I would have planned an extra day and gone up skiing!

If anyone is interested, I've just posted pictures and stories of our trip from June 30 - July 11, 2014 at https://www.facebook.com/media/set/?set=a.10152718473662176.1073741857.669602175&type=1&l=b27507d67d
mountaingirl, thanks for sharing. The trail definitely looks different from when I was there. Makes me want to go back already.
Don't know if it helps anyone at this point, but here is the link to my album when I was there back in June (The alp section is the middle part of my album). Maybe for future June hikers, though the weather each year is a bit different. Seems like this year all the snow came in July and June was pretty low in comparison to the past few years.

Fun, thanks for sharing your pictures @wangjm1985. There are some really interesting shots. It's fun to see what you saw only a few weeks before us. And to see the route you chose. I would do this hike again in a heartbeat because it just goes to show that each time is different. I'm glad it's not an easy hike because then you'd do it once and it might not hold any appeal again. But given the different sections, the weather and the conditions, each trip would be so fascinating! Lesson?? don't expect perfection...Expect adventure! (and to me, that's perfection!) ;-)