There's literally nothing about this online, however If it is true, then I think all can agree it isn't before time. It just looks like a show from another era.
The lives have done a huge amount for the genre in terms of lifting the bar in production terms; for example, it can certainly take some of the credit for influencing Eurovision's evolution into the slick product it is today compared to even just 15 years ago (and it's given the BBC a massive phone book when it comes to finding six people willing to do our National Final.

) It's also raised loads for charity and at its peak provided true water cooler moments. It's even allowed Rage Against The Machine to have a Christmas Number 1.
I think alongside the obvious there's a few reasons it went wrong. Firstly, it never made slow evolutions. It either stayed as it is, or made really radical baby-with-bathwater changes that got reversed after a year. It was a winning formula but it was the fact it was relentlessly formulaic what bought it down.
Secondly, the illusion of it being a fair fight was taken way too far around 2009-2011. The Lucie Jones vs Jedward singoff in 2009. The endless push for Misha B despite the public constantly rejecting her. Janet Devlin under the bus. The massacre that was the 2015 series, and the embarrassing lengths made to get Louisa Johnson over the line.
Then there's the interval acts. Once upon a time it was Lionel Richie, Celine Dion, Whitney Houston... world class artists. Massive current names like Beyonce or Britney or Gaga. Now though it's been every single member of 1D, Little Mix, Cheryl still trying to make herself happen, Louisa Johnson still trying to make herself happen... people notice the fact that the BIG stars can't be a**ed to show up.
But it's had its time. There's much easier and credible ways to get yourself a record deal now because it's so easy to self-release. Anyone can get a song out to the download sites and it's eligible for the chart. From there, a major label and radio will pick you up. Why destroy your self worth on X Factor?