The hyperbole in your last sentence aside, it sounds reasonable enough, but what are your sources for this?
I read it in an article in some entertainment magazine back in the late 90's or early 2000's. It was either Berman or Piller explaining why Insurection failed.
Most of Insurrections budget was spent on building the Ba'ku village. As well for the digital effects, ILM was busy with other projects so they had to use a less competent special effects company. Truth be told, Insurrection wasn't the only Trek movie to have scenes that were expensive to film and had a lot of special effects in them get cut from the film.
TFF had the "Rock Monster" cut from the movie after they spent a lot of money to build the very complicated costume.
Generations was supposed to open with Scotty and Chekov watching Kirk do some orbital skydiving. And Kirks death had to be re-filmed at great expense after test audiences didn't react well to his original death were Soran just shot him.
It's kind of funny how the worst Star Trek movies had the most scenes cut from them after they were filmed.