I suspect the problem with MMS games (as Totalbiscuit described them in his video) is simply a lack of guts. People want these games set in modern times, but due to politics and fear of accusations of bigotry/racism/nationalism and backlash they are afraid to really let people go in them as a sandbox. Basically with the kinds of violence we see over trailers for movies like "Innocence Of Muslims", which the goverments of the Western World refused to take any retaliatory action for, and even hunted down the guy who made it on fairly irrelevent charges for his free speech rights, just imagine the results if someone was to say made videos of themselves doing all kinds of brutal "Grand Theft Auto" type stuff. If the real life versions of the bad guys in question got uppity it's not like our goverment would shut them down, they would blame the people playing the game, and then ultimatly the game's creator.
To an extent I blame Obama (US President) for not only being non-aggressive, but also being what amounts to a US apologist on the big issues. I can also see why under his reign people have been less than eager to put their free speech right to the test, and expect goverment protection of that right. "Innocence Of Muslims" simply being one incident, but for the last few years we've been seeing outcries against the politically incorrect, and distasteful content in video games. I'm not going to spell that out (don't bother to ask) because it's out there and easy enough to find for anyone who really wants to, and it's increasingly off subject.
The basic point here is that this very linear and scripted campaign pretty much ensures anything the player does is going to fit clearly within a set of guidelines, performing specifing lasing activities, entering the doors your supposed to the way your supposed to, etc... there isn't much room for people to committ "virtual war crimes" within the single player at least, "virtual war crimes" being what would be considered "having fun" to most gamers being more or less what you do in properly open world games.
If you had some guy in CoD say deciding the lase random mosques to increase a kill count, waiting for Muslims to come out for prayer before setting off a bunch of claymores, or just generally decided to drive jeeps and tanks around towns and villages randomly killing everyone and everything insurgent or otherwise, there is probably some concern the goverment will act against the company making the game, or we'd see retaliatory strikes, or whatever else if the videos went up on the internet.
Please note that nothing I'm describing is really any differant that what you'd do in say "Grand Theft Auto(series) ", "Mercenaries (2)", "Saints Row (series)" or "Just Cause (2)" to name just a few. It's just the whole "modern warfare" theme makes it so that there is probably fear about creating a chaos theme park, especially given the setting and focus on real places.