Yeah that's definitely a good way of looking at it. I used to run a local events company and I know first hand how difficult balance to measure hype levels, roll things out in good time and manage expectations of names coming and it is a really fine line before expectation and hype becomes frustration.
As you say, Live Nation won't be bothered too much about the individual festivals but the punters attending will be. The end of January is an absolutely crucial time for big commitments to things like festivals. People come off the back of a long January and are (typically) looking for some sort of enjoyment, I think it's often the most popular time for people to book holidays, commit to tickets etc. I think they probably need an announcement next week or people definitely begin looking elsewhere.
I'm surprised (if they're still trying to iron things out with some potentially bigger names) why they haven't just committed to 8-10 medium to smaller names just to tide people over for now.