This is indeed a fact, not a rumor.  Microsoft "giving" developers support like testing and localization is just spin control.  If you went to MS and said you didn't need any of those things, you would not go back to getting 70%.  This was a greed move, plain and simple.  Microsoft doesn't understand what they really have in XBLA.  It could be so much more than a bunch of arcade and match-3 games.