The rights-holders will have to answer the first part.

> This is sheer fantasy,
really—it’s pretty much entirely incompatible with (a) an open market,
and (b) broadcasting (as opposed to simulcasting to millions of people
individually).

They don't want an open market, they have enjoyed a monopoly through broadcasting (limited bandwidth/broadcasters) and through copyright.

They don't wish this to change. Regardless of the potential of new technology for increasing the public utility. (Gains for the public).

If the HD signal is encrypted or licenced, then this can carry over to the Internet where simulcasts, would be encrypted or otherwise restricted.

This is all about maintaining the rights-holders monopoly of content distribution, and possibly charging on a pay-per-view model.

Pro Bono Publico

For the good of the public !
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