@A bit like Economy 7 then
You are correct - however things have changed.
One upon a time in the UK, there was a manufacturing sector and a lot of heavy industry which required lots of electricity. The government (energy was run by the Government) had options - upgrade the infrastructure (i.e. power lines that could cope with more current), curtail demand or load balance.
Load balancing was the favoured option. So you (domestic consumers) use energy in the evenings (when industry has ceased) and allow industry to use that capacity during the day. In exchange, you get cheaper electricity in the evening for 7 hours. Hence the invention of storage heaters. It was always the case that the standing charge was slightly higher but because the rate was lower, as long as you did use a high proportion of electricity at night it was cost effective.
The game has changed - reduction in the manufacturing base means load shifting by consumers is not a priority. Also, we're not willing to use such dire things as storage heaters.
I run my dishwasher, washing machine, bread maker etc. at night but I'm also now told the standard tariff will cost me less. I don't have a plasma TV, I have gas heating and cooking so I think this may be the case with many households.
Smart Metering was devised by the energy companies for their benefit. There is very little benefit for the consumer and the energy companies want us to pay for it. They DO NOT want it to be easy to switch, the innovative scenarios in the article would be dire for them.
These meters will be with us for many years. If you care, do provide feedback to the government via the link else it's no point in complaining for the next few decades. The meters should be configured to allow for switching to the best rate. Of course, there are significant implications for the industry, particularly with regard to billing. One area is not a concern - retail has been separated from transmission so you'll be able to get a fault repaired no matter how the retail arrangements work.