Utter rubbish. Even when he was coming as a sub around the 2004-05 and 2005-06 seasons, the Camp Nou used to cheer him with great enthusiasm whenever he came on as a substitute, game after game. The crowd loved him, because he brought that spark to the midfield. Rijkaard even played him as a DM quite often because of how reliable he already was with the ball.
Nou Camp is cheering more or less any young player since people are always biased towards the next big thing and a future.
So, people cheering a local young La Masia kid with lots of potential doesn't say too much about his actual abilities in that moment.
Iniesta had tons of potential, and was awesome in youth NT teams who were winning titles, so people were expecting that he will be the next big thing.
This is just my comment that Xavi aged 20 was much closer to "a playable" player than 20-21-years old Iniesta, who had tons of potential, but who had way more to improve in his game (than young Xavi).
In numbers (this is just MY OPINION):
Young Messi was 8/10 or prime Messi.
Young Xavi was 6-7 out of 10 of prime Xavi.
Young Iniesta was 3-4/10 prime Iniesta.
So, out of these 3, young Iniesta and prime Iniesta had the biggest difference between young and prime player.
Wrong. Surely he had some flaws and needed to improve much more however, Iniesta was already a mature player for his age during the first 2 seasons after debut.
I found one match from 2004/05 with a nice resolution:
Real Barca from spring 2005:
https://www.youtube.com/watch?v=x90xi7pwUAE
Valdes - Van Bronckhorst, Puyol, Oleguer, Belletti - Marquez, Xavi, Iniesta (No 24) - Ronaldinho, Etoo, Guily
Deco was unavailable, so young Iniesta had to play.
Please take a look at this match, at least 10-20 minutes.
Iniesta was almost by far the most invisible player on a pitch.
When we have the ball, no one is passing the ball to him. He is not imposing himself, he is not making himself too available (and we he does, again no one passes the ball to him). Also, in defense, he was like current Denis Suarez, like made of air. Opponents were pushing him as if he is a 8 year old kid.
Maybe it's not fair to post El Classico, but still, young Iniesta was nowhere near the older Iniesta.
Xavi, on the other hand (he was somewhat older, 24) was imposing himself here, he tried to control the game, and our players were passing the ball to him.
So, please (other users also) take a look at this match for 10-20-30 minutes when you'll have some free time and tell me why everyone ignored young Iniesta.
Also, look at how weak he was in duels with the opponents back then.
He isn't the strongest player even today, but he improved a lot in attacking and defensive duels.