Good to hear @ExitViaTheCashRamp I agree. Hubby and were talking about the way they bundle it not working too. Also what's quite off putting when you try and leave is seeing how punitive they sound about even once accidentally clicking on live TV and sending people around to check etc! It's also not business savvy to charge more than double compared to other streaming services for as you said, low quality content on average. I think they've tried to continue the method of people having a licence when the way people watch TV just isn't the same anymore. Not surprised about BBC bitesized! I work at a uni and most students I know don't use BBC.
You have a curious idea of the value that you get from the TV licence compared to streaming services. The standard Netflix account is £10.99 a month - £131.88 per year. That's only £27 less than the TV licence for which you get a somewhat limited selection of material, a large proportion of which is rubbish, just like all the other services. Amazon Prime is £95 P.A. which also has limited content, most of which is rubbish. (+ £36 if you don't want the ads that they've just started, so £131 P.A.). So Netflix and prime come to £263 P.A. Add on other streaming services to get the material that they don't want to share and you quickly get to eye-watering sums.
Of course the BBC broadcasts a lot of rubbish, as does every broadcast channel and streaming service, but it has historically produced a lot of very high quality programming (ironically a lot of it is so bad that it finds its way onto those wonderful streaming services).
In historical terms the BBC produces 3 broadcast plus one streamed TV channels 5 broadcast radio channels plus some streamed ones. They also have to pay to produce the World Service as our wonderful government dumped the costs onto the BBC.
The range of BBC productions is so wide that a blanket "it's all rubbish" is simply not credible, unless you're a Daily Mail reader.
As to the pick and mix option, none of the streaming providers offer that, no doubt it would lose them too much income, so I doubt that the BBC would if the licence fee was removed and they charged directly for access. Incidentally, most of the streamers aren't making any money, so don't be surprised to see their prices go up, the content go down adn a few of them closing.