The latest bootcamp twist saw hopefuls put through to judges' houses only for the judges to have the option to change their mind and replace the with other singers.
Craig claimed: "That hurts people's feelings. It promises false hope.
"That's not very nice to do to people that want to be in the business. You give them hope and dangle a carrot and then you rip it away from them. I think that's inhumane."
The twist didn't seem to win viewers, with Strictly winning the Saturday night ratings battle by over a million viewers, and Craig's not surprised.
He said of Strictly: "It's something the whole family can watch without malice. People's careers aren't based on it. Their whole careers on X Factor are hanging on everybody's word, it's not the same.
"People in these times want to have a nice happy Saturday night entertainment show that's full of laughs, that's classy and good value entertainment."
Meanwhile, speaking to Digital Spy, Craig defended the appearance of so-called joke acts on the BBC One show over the ITV series.
He explained: "Strictly is an entertainment show, it's not a real competition.
"The celebrities aren't pairing up in order to go on a tango tour of the world, so it's not like X Factor where there's wannabes who'll end up with a recording contract and everybody will make a lot of money out of them.
"X Factor is about searching for a star, so I don't think joke acts belong there. Plus, ours aren't joke acts. They're not employed to be a joke act, they're employed to learn to dance."