VP,
Yes, it really is that bad. Powder longevity is determined largely by storage conditions. Temperature swings, especially trending towards the high extremes, will degrade powders. CIP officially lists powder shelf life as 10 years. We've probably all used powder, ammo, or both that were far, far older than this with no problems at all. But that's probably the rough average of when you'll start seeing problems come up, especially if the powder was stored improperly, and subjected to major temperature swings. As for humidity, ALL powders are hygroscopic, and will absorb moisture. While this doesn't always mean the powders will start degrading (virtually all powders are washed in water to remove certain solvents and acids used to produce them) they have to undergo a drying process to become usable. What you'd likely be running into here is a situation where the weight of the powder itself will change as it absorbs moisture. Since we generally charge by weight (or at least adjust our measures to a specified charge weight with the aid of our scales), you'll be dealing with charges which are now "weaker" than they should be, if the powder had the correct, lower moisture content.
Pretty much the same observations apply to primers as well. Primers actually require a certain degree of moisture to function properly, and I have heard of misfires being caused by primers being stored in sealed ammo cans with too much desiccant. Literally dried them out too much, and they began misfiring badly. Same primers left out in the open for a time (don't recall how long, sorry) began performing normally after they were "rehydrated" to some degree.