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If you read the article
If you read the article you'll find that almost everyone involved agrees it's the issue of not showing John's face. They say that it would be very difficult to convey his emotions as the lead actor without the audience seeing his face.
I'm no director, so I'll take their word for it. It is a little disappointing, though. I agree with the trilogy idea.
Movie 1: history of conflict with the covenant, John 117, Spartan program, the Fall of Reach, and leave them finding the first Halo as a cliffhanger
Movie 2: Halo 1 and Halo 2.
Movei 3: Halo 3.
I think you could do a lot with H3's content as a film.