BUT - the whole method of regulating broadcast and cable TV will have to be rebuilt from the ground up for that to become a reality. Right now the regulatory scheme from the FCC on down to local bureaucracies is almost impossible to describe, and has an inertia about it that is very much in favor of the status quo. Any major changes now are going to cost some members of a very powerful lobby a huge amount in lost equity. The friends and foes in past failed attempts to fix this situation would be a big surprise to many FReepers.
In a more consumer friendly market, broadcast TV supplemented with DBS (satellite) would have made cable TV obsolete years ago.
I talked with a few of the station engineers and they were saying — local broadcast HDTV channels are pushing their sub channels, better picture, and free program guide. In response the local Comcast added their HDTV signals in 1080i to thier cable offering free. So there is some competition going on, with the broadcasters seeing added value in the sub-channels ability to offer alternate programming.
The broadcasters, one to many, thought their way was a lot cheaper to the consumer. They essentially get the sub-channels for free. One station engineer said they could easily add some of the cable channels if allowed.
The local taxing authority has more to do with the regulations than anything else. The local cable company struck a sweetheart deal with our taxing authority, if they would prevent other sources of Internet and cable TV from being allowed. They forced bundled service on us as well. So we are stuck with $100 a month bills that includes a hefty right of way tax, if you want Internet and cable.
As you say, the whole thing is a mess and IMHO needs to be cut loose so nature could take it’s course.