From what I've been reading they only pulled in a group of big-name CS:S players to test it, no 1.6'ers, and they aren't adding any of features that keep 1.6 players on that game. One of the playtesters even mentioned that they were playing on reworked versions of the original CS:S maps, only moved over to a newer engine and slightly spruced up.
I know I should wait and see, but it's sounding pretty mild so far. More like Counter-Strike: Source: Deluxe Edition than a massive, new Counter-Strike 2, which I'd really prefer.
Also, Gabe has said repeatedly that ep3 will never exist. Valve abandoned episodic content. Half-Life 3 is going to be a full-length game, and of course they're working on it.
They said they've given up on the episodic game model, because they're terrible at it, but it's hardly an indication that Episode Three is dead. It would feel strange jumping right into Half-Life 3 before the Half-Life 2 story has reached it's climax. But then again, it
is Valve, so who knows.
I really miss Valve's monolithic games. There's less and less of a 'jump' between titles, and arguably a lot less innovation (Portal 2 being one exception). Their "games as a service" philosophy is nice and all, and they're easily a lot more generous than most developers, but it feels like it's diluting their work at the same time.