For what it is worth (not a lot I know) I've been enjoying this series. Maybe even more than previous series at a similar stage.
I think part of the problem is when fans started worrying about the ratings then listing all the things they found wrong with the show - it talks down its chances of success.
That's maybe where C5 went wrong in axing the live feed, not that no live feed effects the ratings of the highlights show very much directly, it probably doesn't. But they still needed the hardcore fans to evangelise (rather than complain) about Big Brother to the wider public and get them to tune it.
You see the wider public don't watch, say, The X Factor because it is any good; they watch it because it is being talked all over the place, and it is event TV and to miss it would be to miss out.
Having said all that though, Big Brother on Channel 5 is still getting alright ratings for them, see the post I made here -
http://www.thisisbigbrother.com/foru...t=#post4529984 (those are official ratings, not overnights). As has been said we don't have enough information to judge on what they are looking for.