£145 = £12.08 / month.
Most people spend more than that on alcohol each *week*.
As for the accusations of slipping standards at the BBC: Google "John Birt" and read up on what he did to the BBC back in the early '90s. (Yes, under the previous *Tory* administration.) It was he who butchered the BBC as-was, and reduced it to little more than a shell of its former self, stuffed with middle managers and an internal "market", vastly inflating the costs of even basic programming. (Incidentally, Jonathan Ross' programmes were produced by Mr. Ross' own production company. That's why there's a big "HotSauce TV" logo at the end of the credits. This is the reason why the BBC cannot simply open up its archives for free, or even sell on many of its programmes: they don't *own* them. The new "Doctor Who" series are that increasingly rare exception: a fully in-house BBC production.)
Most of your License Fee is actually going to middle-managers, consultants, buyers, lawyers, etc., who have to get involved whenever an outside production company is used. And, thanks to the John Major administration, the BBC *has* to use such production companies for a huge chunk of its output. Take a look at most of that 'fiiller' crud that's shovelled into the schedule and you'll find most of it *isn't* made by the BBC.
Accusations of bias also hold little water: watch any of the satirical panel shows, like "Have I Got News For You" and you'll soon see the lie. Most people in the media distrust *all* politicians. Which is how it *should* be. However, the Tories have never made any secret of their hatred for the BBC and its ilk: they spent most of their previous administrations trying to privatise everything under the sun; it's hardly surprising the BBC felt it was going to be next under the hammer. Under John Birt's Director-Generalship, it damned near was. A pro-Public Services* bias is therefore hardly surprising.
That said, the BBC *does* need to be heavily remodelled away from old-school "broadcasting", perhaps becoming more like a state-owned content production company instead. The BBC could retain just one or two TV and radio channels mainly for educational programming, special events, pilots and similarly uncommercial content, with less need for exp. This would also have the natural side-effect of dramatically reducing the costs of running the BBC. (These channels would not need to broadcast 24 / 7 either.)
A separate, "BBC Syndication" arm would be concerned with selling BBC (and other production companies') output to commercial broadcasters overseas, much as a syndication company does in the US.
A democracy can only work where there is (a) timely and accurate information, and (b) a strong, effective, educational system. Without *both*, a true democracy cannot exist. And that's why we *need* something like the BBC, because it is NOT in the best interests of *commercial* media outlets to inform, educate and entertain. They only care about the "entertain" part. So something like the BBC helps keep it all in check. It gives us a baseline measurement of quality to which its rivals can be held.
* (Not necessarily "Pro Labour", as New Labour weren't particularly interested in keeping lots of state-owned assets on their books either.)