Bungie said that there will be no menu. Some people have taken this as no start up menu and others no in-game menu (like the ones in Halo that would show you "Leave Game" and such). We have seen both a type of option/startup menu as well as an in-game inventory screen. I am going to assume that Bungie meant an in-game menu since there is no option for that on the PS4 and X1 controllers (no Start button anymore). I'm sure they will make it work.
This is not confirmation about the menu system. Everything is speculation. Destiny is still in its early stages so things will change and change again. Bungie makes the final call (but they like our good opinions).
The player editing/inventory doesn't count as a pause/in-game menu since the game continues.
Ad astra.
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Just now thought of it, I think there will be a loading screen, there will be a menu Ingame to do different things. You will always be placed in the world with many other players also in the same world as you, a menu accessed while Ingame to play Campaign, etc. Then again Campaign might be played while at the risk of being shot by another player, sort of an FFA world campaign(isnt very likely in my mind but sounds interesting)