Halo 3 days were the start of the end. Halo starting losing popularity among the masses. It was the time frame when CoD4 was released and starting pulling away population from Halo. To be honest Halo 3 wasn't even that good of a game. Halo 2 days.... Those were a whole different monster. Not only was the game awesome but it had essentially ZERO competition. The only other game that other players would occasionally play was SWBF2. Seriously, my friends list during Halo 2 was exclusively Halo 2. I would become shocked if someone was playing something else. Halo 3 on the other hand wasn't nearly the same. My friends list started to become Halo, CoD, Gears of War, etc..
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Ah yeah, good times. Though I feel like we are far to quick to condemn the Call of Duty franchise for "killing Halo" and taking away players. Way back when CoD4 was popular for many of the same reasons Halo was popular: simple gameplay, great maps, fun custom games with friends, and a competative scene. Cod4 had the MP5 and M16 and M40A3 like Halo had it's BR, Sniper and Rockets. It wasn't until MW2 when they started throwing tons of crap into the online to make it kiddie accessable. CoD4 also has IMO one of the best campaigns in a shooter. All Ghillied Up may be my favorite single player mission of all time. The understated epicness of hiding in plain sight while a column of russian tanks rolls right past you still gives me chills every day.