I really wonder what RAI would have done if Italy actually won this stuff. They said they didn't wanna organize the next contest.
If we won, I think we would have probably given up partecipating, in order to avoid the expense of organization. The reason why we did not partecipate in the last years was merely financial: the cost of partecipating (let alone organizing) has always been considered too high compared to the meagre audience that the ESC has always had here in Italy - and still has, looking at the poor results of audience in this edition, too.
For which I think there are three reasons:
1- most Italians don't understand English language, at least not to the point of understanding the words of a song. For them, the show is boring, because they don't understand the words, they see a presenter on stage but not understand what he says, and the off-stage voice is a sure "change channel" thing
2- the Italian audience is much divided between the "rockphiles", who listen to international rock, know English, et c., and the "pop-philes", who don't understand English, and only listen to local pop stars (plus the occasional Shakira or Gaga).
3- the kind of music that goes strong in Eurovision contest (the dance-pop) is really weak at Italian audience - we don't like it, radios don't cast it, it just doesn't work here.
From the RAI point of view, there is no point in spending millions for a show, when with a talk show that costs nothing (political, or about a murder) they can make double or triple the audience at a fraction of the cost.
And this is not true of Eurovision only. All live shows (Sanremo, Miss Italia) are going worse and worse in terms of audience.
Which might be a good sign, actually (if people starts liking political debates more than pop shows).