This. All games will be peer-hosted, and will have a max of 16 players. On the PC, when I play CoD:WaW multiplayer I always play on servers with ~30 players because I like the pace and associated map-size a lot better.
Yea, dedicated servers make far more sense, given that listen servers mean someone must leave the game running as the primary app at all times in order to serve, and DS'es can have multiple sessions on the same machine, if configured right. Hell, I've had 3 Unreal Tournament DS's running on one machine at one time before, just set different port numbers for them.
Pretty fricking stupid decision on their part.