>>>they could always get rid of the fee here and make the BBC function like other business do on the open market, lets see how good they are and how many people want their "services" if they go subscription like most other channels do.
With the advent of internet advertising (and advertising through social media), the amount of advertising revenue available to TV broadcasters has dropped dramatically. (In real terms it's little more than 10% of what it was at its peak). Many channels struggle to stay on air. In particular, ITV1 has real difficulties.
Many commercial broadcasters have indicated that if the BBC is to be funded by advertising (thus reducing the amount of revenue available for others) they will have to close. Getting rid of the licence fee (or an alternative form of public funding) would result in the loss of many (possibly most) independent channels. Is that what you really want, Baz?
It should be remembered that the BBC already gets much of its funding through commercial activities, as it co-owns UKTV (Dave, Yesterday, Really, GOLD, Alibi, Blighty, Good Food, Home, Watch & Eden).