Albus Dumbledore is such an integral character to the story that he would necessitate a large chunk of screen time. I don't think the muppet or CG image has yet been created that would be sufficent to handle that.
More than likely, the role will be re-cast, and there are many, many good actors out there could pull off the role. Personally, I hope they use an unknown. But I'm sure the rest of the movies will be made. They just might be delayed for a while.
At the very least, it shouldn't turn out as awkwardly as the death of Bela Lugosi halfway through the filming of Plan Nine from Outer Space. Any of you lot know that story?
-Ryuu
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