I don't think having lyrics has hurt ice dancing so far, so I will reserve judgement.
I adore my skater's artistic program. It has lyrics. it's just so beautiful - she has a real connection with it...
I hope that it just gives more skating where the skater has an emotional connection.
But an artistic program is, by definition, different than a freeskate. An artistic program does not have the difficulty of a freeskate, nor the amount of elements of a freeskate. I have seem some amazing artistic programs - but I have also seen those skaters not have as much of a connection to the music in the freeskate. I don't think lyrics versus no lyrics caused that, rather it was the different functions of the programs.
I also think ice dancing is a bit different, because the programs are put together with more of the music in mind and the elements are an extension of the music. In freeskate, very often the elements are what the programs are built around (this jump needs to come first, etc) and the musicality gets lost to some degree. I can't see lyrics helping this. I can see more skaters mouthing the words, or hitting words with a pose (just like they do with arm movements to a beat of music now).
I really don't see what is being gained, I guess, by adding lyrics. Yes, it may open up more songs, but as others have said - it's going to be 1000 Carmens or 1000 Adele songs. It's not going to matter.