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There's two sides to every story and all we know right now is that the head of Infinity Ward has been fired.  I like to see more of what transpired before judging Activision on their actions. 

As far as Sledgehammer creating a COD game will just has to wait see what comes of it. It might turn out to be something great.  But it looks like Activision is getting ready to milk the COD name and franchise much like they did to Guitar Hero.  That would be a shame.

It's also possible they are going to Spin Off the Modern Warfare name into it's own franchise like they had planned earlier with Modern Warfare 2.  It goes along with their earlier statements about milking franchises.

A lot of questions and very few answers...Just have to wait and see how it unfolds.