> This isn't correct. Aereo only rebroadcasts local market channels to local market subscribers. I in SF can't get NY based content, this would get shutdown quick (See Ivi TV [1])

You're missing the point. Cable companies also only rebroadcast local market channels to local market subscribers. The difference is that they pay the broadcast networks for that right. But if Aereo can get away with not paying, so can they.