My problem is the assumption that everyone now wants bar-based lyrics. We don't!
All the people I know who use the program want to use
note-based lyrics because this is the proper way to produce a lead sheet. All the pop-up notes about converting to bar-based lyrics are a bloody nuisance and I have been asking for them to be removed since this new version came out.
However, I too have a problem with the fact that I have several hundred of songs with line-based lyrics. My usual solution is to redo the lyrics from scratch.

I suppose it is too much to ask for a 'convert line-based to note-based'. There used to be such a function, from memory, although I realize it is a difficult bit of programming to get right, because the lyric syllables don't always match the notes. Especially where you have more than one verse or slight changes in lyrics for different choruses. But that is okay because one can edit the new note-based lyrics if they are put attached to the wrong note.
PG marketing must realise that there are still huge numbers of people using Band-in-a-Box for creating lead sheets, rather than those that use it for playing live, where they only need the chords and lyrics. Frankly, I think we note-based lyric types are still the majority! Perhaps PG Music should do a survey to find out the real customers numbers using each method and make sure that the future development at least caters for all user requirements. It is great that the program works for all types of users but I just think there has been too much emphasis in the last two years on providing play sheets for the strummer/singers.