It's no rumor. Pressboard siding will eventually take on moisture and turn into a mushy, soft mess. It's just a matter of how long it takes to get there. My house is 30 years old, and anywhere the siding has had an opportunity to hold water, it has deteriorated. Other locations are not bad.
I'd like to hear any tips about replacing just the deteriorated siding sections. Looks like it will be difficult to pull off the affected sections without tearing up the sections I want to leave in place. And then how do I get the new sections underneath the existing?