@Anthony
I'm someone with a >£500 HD telly, Freeview and not Sky or Virgin. So no HD signal. But I'm dammed if I'm going to pay the vast sums Murdoch and Virgin demand to ship ad-crammed garbage into my house by the container-load. Because I'm a cheapskate? No, because I can't see anything in their offerings that I want to watch, and while HD would be nice, it's the programming that's important, not the screen resolution. For the (not great) amount of TV that I watch, Freeview plus the licence fee is a compelling option.
By your argument, Sky would have penetrated the market from the wealthy down. I'd argue that history was significantly different.
As to the original piece, it's similar to loads produced a decade ago. 'In the upcoming multi-channel world, no-one will want the Beeb'. Turns out that the multi-channel world of choice is a choice of crap or drek, and a lot of people do still want the Beeb.