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where is the ledger integration? It was "very very soon" two weeks ago

It cant officially happen before there is 0.12.1 Should happen this month for sure. Probably first half.

Read somewhere reddit/twitter that 0.12.1 is one to two weeks out.
Still expecting cli only. Would be a great surprise to see gui integration but I really doubt it.

You can use Ledger with the GUI. There is, however, one caveat. That is, you can only generate the wallet with the CLI.

Why is that? Are there potential security issues with generating through the GUI, or just something else entirely?

Wallet creation in the command line requires a different argument and will interact with the existing 24 word seed in your ledger. I think that functionality will just need to be mirrored in the gui. A button for wallet creation from Ledger and such...

Correct.

When could this button be ready?

There's no specific ETA. I guess it will be ready when someone is able to work on it.