Every time I type if
and press the space bar, Delphi completes it with if True then
and a new empty line above.
Is there a way to remove this "autocomplete" feature or at least edit it to not create the new line?
From the Tools | Options | Editor Options | Code Insight menu, deselect the Auto complete check box under Code template completion.
Once you disable template auto complete then you need to manually invoke the template if you want it. Do that with CTRL+J.