As someone who worked for the Beeb in the regions for 18 years (reporter, producer, specialist correspondent, news editor, documentary maker and local radio managing editor), I declare an obvious interest...
People always associate the licence fee only with TV, but you have to remember that the BBC also runs 6 national radio stations, 39 local ones, regional TV news, the website, educational programmes, the World Service, kids' TV, etc etc. The problem with the licence fee is that if you remove it, it's the public service stuff people value most which will be lost - purely because it's not commercial. For example, local radio has played a blinder during Covid-19, supporting community volunteering etc.
But in today's digital world, the licence fee doesn't fit. I don't really know what the answer is. The BBC management isn't great and has made some massive strategic errors - including agreeing to pay for free TV for the over 75s. That on its own will bankrupt the Beeb within 20 years. But I do wish people would shut up about bias. When I was a senior editor, we got complaints from the Tories and Labour in equal measure. I'd say that shows we had it about right!
PS. Did you know the BBC logo is the world's third most recognised brand - after Coca Cola and the Christian cross? That's down to the World Service, which is renowned for its impartial coverage of global affairs. Losing that would be a catastrophe...