Dedicated servers don't make a single bit of difference, Lag compensation is also used in dedicated servers.
True, but depending on the game high pingers can be excluded automatically, or admins can kick them.
Which is basically the point.
Console gamers don't have those options, which is why they rely on the developers to address poor matchmaking issues etc.
Andrew's post linked to Infinity Ward's patch to adjust lag compensation code issues for low pingers. Treyarch denied there was a problem and said the code had always been the same. Both companies said they would rather you got into "any game", than have to wait ten minutes for the "right game. A little consistency is required.
If you are going to struggle against high pingers in every game, why be penalised when hosting. It's the only game that you will not be at a disadvantage. Why put the host at a disadvantage to eleven other players? Is that fairer than eleven other players not being able to kill only one player, the host?
It's plainly a nonsense approach.