I'm not surprised at all by this news. MGS4 started development in 2005 so some of the graphics are pretty basic (bland textures), the current year is 2009.
Its pretty obvious Kojima is trying to distance himself from this one and Peace Walker (PSP exclusive) is going to be the next true sequel. I bet kam is right, this will be a hack n slash game. Not straight up hack n slash but I'm guessing they will go that route to please..... the other western gamers.
If there's a boss battle that tops the Raiden v Vamp/Snake vs MG Rexs, then my mind will be blown.