Very surprised with this decision. No cheat protection is perfect but VAC is definitely lacking when compared to PB in my experiences. If this had been implemented in CoD4, I can not imagine how many obvious cheaters would not have been caught. My pre-order has been canceled as well, kind of bummed as I was looking forward to this game.
No dedicated servers from an experience standpoint seems like a disaster. There's a reason I frequent certain servers across multiple titles. The admins that run them keep the idiots at bay which makes the experience much, much more fun. I can only assume they'll have some vote kick type system in place to deal with disruptive users. I can't say I've ever seen it work.
I scanned this thread and haven't researched it much but it seems with this decision, mods will be impossible. I guess that also means no league play.