I'm sorry but you can't have it both ways - you seem to be advocating a system of only paying for what you are watching, but you are certainly not doing this with Sky, you pay a subscription which subsidises the whole network, and most certainly charges you more for the programs you watch than it needs to.
The other thing to bear in mind is that TV is not like buying Mars Bars. The SKY model is to charge subscribers a good deal more than the BBC charges them, but it is not charging them to make programs - in fact it could provide the services for free - it is effectively allowing them to pay for the privilege of being sold on as advertising audiences to advertisers without any of that value as a consumer coming back to them as customers.
In effect SKY's customers are only customers in the sense that they have to consume product so advertisers will continue to give money to SKY. They are not customers in the sense that they could, for example, choose to buy the programme but not the advertising. They are tied into that deal because that is how SKY makes its money. This also means, of course, that SKY can have their programming dictated to far quicker and more powerfully by the advertisers than the viewers.
The perfect end-game for SKY is to have no-one else in the market, so that they don't even have to bother with quality. luckily we have the BBC as a brake on that both in terms of distribution of signal (freeview is a great example.. and the legislative obligation to all broadcasters to contribute isn't as you seem to want to imply and example of lovely fluffy generous SKY, it is an example of the influence of many broadcasters, regulators, and the BBC on the government) and in terms of maintaining quality in the market when the major producers really couldn't give a monkey's about advancing quality, reporting integrity etc as long as you watch and consume.
In a market with massive barriers to entry and such political influence and control over information itself, it is incredibly dangerous to allow an aggressive, unethical player like SKY dominate purely because it has cash to do so. It is interesting that SKY really likes protected controlled markets when it enters them, but campaigns vociferousy against market protection and control when it acheives dominant critical mass. None of that is motivated by program quality I'm afraid.