1) Luke Has Died And Become A Force Ghost
Because there’s such mystery surrounding Luke Skywalker in the film, the rumor mill has gone into overdrive regarding the state of the character in Episode VII. A couple of already mentioned factors come into play here, though.
Firstly, it would be odd and nonsensical for Abrams to have killed the character off in between films, and secondly, it would seem a waste to bring Mark Hamill back into the fold having not given him a respectful (for him and the fans) send-off.
[zergpaid]There’s also what we have as known facts regarding the shooting of Episodes VII and VIII: that both productions shot at the new home of Skywalker on Ireland’s Skellig Michael.
Giving Luke Skywalker a physical home that the new trilogy’s heroes have to actively travel to in order to contact him means he is most likely not a force ghost; those can appear anywhere and at any time, after all. Also, giving Skywalker a physical location to hide out in means the character has to still be made of physical matter, right?