X Factor won't be cancelled. It's not doing as well as it once was (didn't something like 15 million watch 2010's final?), but it's not doing terribly. I just think it needs a revamp, it's been going downhill since 2009 when they moved into that new studio. 2008 was the best year - it's peak. 2009 saw the rise in novelty acts (Jedward) and a focus on popularity over talent.
Simon probably needs to come back, as better as an actual judge I think Gary Barlow is. Nicole should stay, while Louis and Tulisa have run their course.