I am really split on this, beyond the fact that I am elated to have Kevin back as the director, I don't think his heart is going to be in it and I'm not sure a brilliant director withou tpassion is a better choice than a hack director with passion.
Beyond that, Paramount pulled an asshat move, and they personally deserve everything that happens to that project. There is no potential for a good sequel, and it should be left alone. Paranormal Activity got lucky the first time, there is no way the hype will reach that of the first film and they had it relatively easy, Saw V was universally beat down, and rightfully so.
Now we have a sequel to a movie that over half the audience was let down by (PA) and a sequel to a film that is widely regarded as the best or second best entry in the franchise (Saw VI) - Saw VI will win this battle any way you put it, (The positive reactions from the first film + 3D = Sucess). Paramount got a little too arrogant and screw them.
If I was in TwistedPictures/Lionsgates shoes, I would have done the same exact damn thing - no-one can blame them for that, this is a business first and foremost. I feel terrible for Kevin, I do, but he did know that this was possible, but then again, if I were him I wouldn't think anything of it because David had already been hired.
I feel really terrible for David - yes, he filmed the worst entry in the series, and I wouldn't trust him with another installment, but to have another oppurtunity in his hand to prove his worth as a director, and for it to be ripped from him is horrible.