The use of RF frequencies to broadcast TV content is by far the best way to deliver that content for a certain subset of programs that cover live events for huge audiences[1]. Serving that stuff over IP would be a real challenge. I'd prefer it if we could keep a few RF broadcast channels around but move all the Family Guy and Top Gear re-runs onto on-demand IP based systems.
[1] Things like major sporting events, Saturday night talent show finals, large scale news events e.g. 9/11, Christmas specials and key episodes of certain soap operas.
I agree, it is challenging but there are already techniques which solve most of the problem. Namely IP multicast. Maybe this would finally push ISPs to properly support it?
Would there be huge audiences if they were not broadcast? Does mass media primarily serve mass interests, or create them? If the promoters of sporting events didn't have automatic channels into everyone's home, would people seek out those channels if they had to directly bear the cost and effort to do so?
[1] Things like major sporting events, Saturday night talent show finals, large scale news events e.g. 9/11, Christmas specials and key episodes of certain soap operas.