And we can already see if it is gutted how it will suck because it ties into watering down the dialogue trees as well.
Modifying it to make it more robust would be fine (you have karma on a scale from good to bad with different factions and maybe even different villages or people, for instance, instead of just one overall karma balance for everyone), but the concept of reputation and actions having consequences in the game world, which is what Karma represents, is integral to the experience.
Right now from the gameplay videos, the gunplay looks significantly improved and very "Bioshock", but the RPG aspects of dialogue seem to be much slimmer and worse off as a result. Rather than having multiple dialogue options that matter, you get vague Red/Yellow/Green/Exit conversation style dialogue trees akin to Mass Effect, which are ambiguous at best, and meaningless at worst.
Even F3 and NV gutted dialogue depth substantially (3 more than NV) and the game suffers as a result.
Its a fine line between reading/listening to a book, and having no interactions of merit or worth in the game world.