But the people who have actually played it didn't experience these issues. Your inability to imagine it working doesn't negate the fact that the control scheme exists and has been confirmed to be working quite well. Remember that there are several buttons to play with; holding a button while you move the controller may change what it does. Also, it may be sensitive enough to tell the difference between a jerk and simply pulling something back smoothly.
I think the screenshots look very "in-engine," i.e. there's more than a little bit of extra FSAA, some of them are obviously not from gameplay, and in the shots with guns, the bad guy models are in the same poses, which would indicate to me that they constructed those areas specifically for the screenshots. But nothing looks unreasonable at all; it's not like they're filled with blatant SM 3.0 effects or anything.
And given the incredibly low system requirements of COD2 (you can crank stuff way down and still play it on a DX7 card and a Pentium III), I don't think there will be a problem with having open areas on Revolution (esp. since we already saw them on current-gen consoles). Rev open areas just won't look half as good as X360/PS3 open areas.