The current system is definitely going to collapse, but I'm not sure Apple's plan for a small bundle will work. The fundamental problem is that everyone only watches like 10% of the channels they have access to (or whatever the number is) but it's not the same 10%.
The vast majority of the channels I pay for, I will never watch. And the vast majority you pay for, you will never watch. Unfortunately, what we do watch might not overlap at all. So people may only need 20ish channels or something, but it's not the same 20ish. Trying to force a specific thin bundle for everyone is not good for consumers unless what they pick happens to be your favorites.
So, yeah, the big cable companies need to adapt or die, but they do have a point when they say all of their channels are in some way must-haves.
I thought that more people would see this. Cable providers sell the whole bunch, because it wouldn't be profitable to keep smaller channels alive otherwise. You'd end up with the stuff that just the majority wants and lose the stuff that has no mass-market appeal. That's an unfortunate loss of diversity in media.