This is true.
I've been training for a class up at alta and i talked to the guys there and that is what happened. If you look up where chads used to be, there are alot of big bulldozer tracks. You can see the hill where the jump is built usually, and now its just flat afterwards. They also put some deep grooves in the inrun so that no one tries to gap the like 300ft gap to the next downhill area by it. They could be easily filled in if needed though.
It's a bummer but at least pyramid is still around, for now. Apparently they are trying to mow down pyramid too. They also said something about a project they are putting together to survay the area throughout the winter and bulldoze any other gaps that were used over the winter, due once again to liability.