Yes, you read that right. There won't be any LAN support for the console or PC versions of BioShock 2. Dedicated servers are also out completely.
The Cult of Rapture put up a Q&A list of multiplayer related key points and LAN support and dedicated servers just weren't able to make it in. Digital Extremes, the developers behind BioShock 2's multiplayer, wanted to ensure they created a solid game foundation first and foremost. They could have either spent all their resources doing everything and leaving things feeling unfinished, or they could have spent their time focusing on key parts to make a good overall multiplayer experience, as the A of the Q&A states.
Expect petitions expressing rage over this news to make it all over the net in 3 ... 2 ...
BIOSHOCK 2 MULTIPLAYER AND MATCHMAKING Q&A [2K Games]