This is what over-the-air TV program looks like these days. What percentage of its broadcast time consists of quality TV shows? (Don't forget to factor in all the ads.) How much of it would you watch, honestly?
I would say your complaint about quality shows as a percentage of broadcast time is a valid argument for moving TV to more on-demand media (watching a show on Netflix or Hulu vs being on the couch at 9PM on a Thursday). There's still some decent stuff out there. The only thing this doesn't solve is sports programming, which is practically worthless if it's not live and from which NBC makes a fortune as a "premium" football channel.
As far as too many channels, it's not like you have to constantly look at those channels.