Blazzen]All of the recent COD games on consoles have been peer to peer. All of recent memory. If the guy that's hosting disconnects it would say "host disconnected, choosing new host". I don't recall ever having bad lag because of it though. I think it pairs you depending on the part of the country you're in.
Yup. The thing with it working better on consoles is simply due to the location pairing. The one and only console FPS game I played a lot was COD MW2 (I bought and used a XIM360 for it lol) and it would pair you with people as close to your location as possible. Factoring in that everyone has the same pieces of hardware, the lag honestly wasn't much of a issue. I actually had fun, could instantly find matches.
For PC though, definitely needs dedicated servers. Go read user reviews on COD AW, 90% are negative and are due to the lag with no dedicated servers. Game looks cool though!
oh and... LOL @ the lan fight.