I would love to see local news (minus commercials). I'd definitely pay $5 a month for that.
Same is true of national news. If the commercial doesn't run, there's other (semi-throwaway) content. Same is true for national news during the weather segment, local news can splice in a local weather and if they don't, it's national or regional weather.
Because of this, they should be able to sell the non-overlay version with content instead of ads. Sure it's throwaway content, but at least it's not yelling at you to buy things.