Nobody said it was one or the other. The local news is still OTA.
Yes, the right for the public to get them is FREE - but the right to RE-BROADCAST them for money is not free.
I understand this. But why is Apple, or anyone else, worrying so much about negotiating with companies to rebroadcast something that over 80% of the US Population already has access to for free - it's redundant? If it's a redundant service for 80% of the US population, and largely irrelevant to the rest of the world, it's a minor and inconsequential feature that should not interfere or delay launching the larger product.
Moreover, if I can get it OTA, I'd rather not stream it over IP. OTA has no penalties, but IP streaming it will use some of your bandwidth, and some of your data if it's capped (which, more and more home ISPs like Comcast are putting in place data caps).