Do you have any evidence for this assertion? Obviously their usefulness varied ward by ward but in my experience the main problem with them was the discretionary funding allocated to them was too small given the good initiatives that were being suggested through them.
Now more money is available through the Community Infrastructure Levy, Labour seem to be initiating a power grab to ensure they control how every penny is spent. However, the town based format will dilute the usefulness of the forums and probably mean the money will be spent on council priorities rather than resident ones. For instance, how long before the expenses of setting up a new CPZ will be paid for by the town forums funds?