According to that article, Summit really doesn't see a need to give New Moon a bigger budget, since they made Twilight just fine. *rolls eyes* That's pathetic. I went and saw Twilight aware of how small and limited their financial and locational resources were. That's what has allowed me to overlook much of the movie's flaws. To pull the same thing with New Moon is completely ridiculous. If they think they can make New Moon successfully on that kind of a budget, they're INSANE.
I have absolutely no issues with Catharine Hardwicke; I think she did the best job she could given the materials, time, and money she was given. Even she isn't fully happy with Twilight and I think way too many people, ignorant of the situation, are falsely blaming everything on her. Though a new screenwriter would be great. If Rob and Kristen are still awkward in New Moon I will be very unhappy. There were way too many one-liners in Twilight, where it seems like they just kind picked and chose their favorite lines and then worked around them. There was no true, natural flow to Bella and Edward.
Overall, Twilight has made tons of money in just the first week alone. They would be stupid to not try and give New Moon whatever it needed to stay true to the story. Hopefully that'll also include a new Jacob *prays*.