I have suspected something was up for a few months now but was not sure what was going on. First off a few months ago I noticed that the noticeable lag was gone, no more rubber banding, skipping players etc. Second, the lack of any host migration whatsoever, I don't even remember the last time I saw a host migration, keep in mind this was all in public hardcore playlists. The thought of playing on a dedicated sever did cross my mind, but this was on PS3, so that thought quickly went to "no way they are doing dedis on PS3". I decided that they had just improved matchmaking and had found a way to hide the host migrations. I watched the video and I think that I have been playing on dedicated servers for awhile now on PS3.
I haven't had a host migration in a long time as well. However, the game has progressively gotten worse from my experience. I am constantly playing people outside of the USA (while living in Mid-America...) - i.e Mexico, Venezuela, etc. Now, this may simply be a problem with the host choices creating this bad experience. In the Drift0r video, the guy is in Cali connecting to Jersey. That is highly bad. If that is the case, then it seems like they have some serious issues with matchmaking even on dedi's. If I end up playing foreigners the entire time in Ghosts like I have been the entire last month+, I won't be a happy player.