Well, for my part, I would not mind auditions for half the year, pick 50 or so contestants, maybe give them 3 nights or so of two hour shows, don't get rid of anyone until they had been in the bottom three a few times -- have the performance/"competition" part of the show last the rest of the year through December, start over again in January. That is how much I enjoy this show relative to other things that get presented on TV. Apparently it is felt that ratings would not support such a format, so decisions are made.
Of course if the idea is just to pronounce the favorite dancer, just skip the airing of auditions, present maybe ten dancers in a single one hour show, have a one time vote, most votes wins -- there you've done it with a minimum of air time and skipped all the tedious dancing and this show occupying all that unfortunate screen time. Now why we should have to sacrifice this show on the account of the Olympics is a mystery to me, but a choice someone made presumably under ratings considerations -- damn shame if you ask me -- just because they take away my show, does not mean I will be forced to watch the Olympics, only that live TV will get less air in my household this month.
Incidentally, as one measure of the potency of the audition phase: remember that twin brother duo, who could not even hope to qualify for the show based on age? In my view, they provided a very entertaining segment which reflected the charm of this show and value of the audition phase. Jay Leno thought so too, and recently featured "the Ninja Twins" doing a bit, possibly ongoing, on his show.