I agree with Eightieschick: I have no objection to the TV Licence and pay for it online in full every year (I agree about not letting them have the benefit advanace payment, which is what the payments by installment entails).
Like her, I think that the threatening letters are wrong and do not help the public's perception of the worth of the licence. It gives people a bad taste in the mouth.
My dh bought a TV for his dad a few years ago (to replace another one). He had to supply his address. He then received a number of threatening letters asking for his licence details - despite the fact that at the same address there was already a licence - albeit in my (different) name. He refused to respond to them as they involved calling an 0870 number or paying for a stamp (why should he?). I think they eventually sent him a prepaid envelope or they finally got their act together and realsied there was already a TV licence for the address. But we were happy to let them to the door and make a fool of themselves.
Despite that, I still beleive that the BBC is fantastic value - having visited/lived in many other countries over the years, there is nothing to beat it.
Yes - it does mass market programmes like Strictly Come Dancing and (yuck) The Weakest Link. But it also does great drama, children's TV, family drama (Doctor Who is a family favourite), documentaries and investigative journalism.
Persoanlly, I get annoyed on occasion that it seems to be more the EBC and than the BBC, for example, buying the rights to the England football team's games but not the Scotland team's . And their need to send up reporters from London to cover Scottish "big" stories, rather than use the local reporters.
But on balance, as I sit here listening to Radio 2, it is well worth the money.