20 years ago this was a non-debate, but 20 years ago you had very few good original programs on cable. Now it's the other way around and people are voting with their time and money to say, basically, yes.
The broadcast networks are currently hand-cuffed and they know it.
Silly thing is, they handcuff themselves when they don't have to.
The rules say they only have to censor between 6 am and 10 pm. Yet they censor everything. The 10 pm hour could be much more liberated; but they're afraid of all the affiliates they might lose and the special interest groups that would protest. So they do nothing.
Anyone who says that you don't need X or Y to make a good show - you're right, you don't need it. But audiences are coming to expect and want it more and more.
Look at "I Love Lucy" and compare it to "All in the Family" and then compare it to "Friends" and you'll see how the constraints of censorship have changed as the decades go by. Only now, the pressure is even stronger because people can flip to basic or pay cable and see a show that's much more realistic by virtue of not being bound and gagged on what they can say or do.
Honestly, I find the restraint of the basic cable networks confusing. Basic cable is under no different rules than pay cable, yet they hold themselves back. They go further than broadcast; but not as far as pay. It's all very curious.
Personally? I'm 100% anti-censorship. I think we pay too much head to tiny vocal groups who want to pretend reality is a 1950 Norman Rockwell painting. But that's me. Thankfully, it does seem more people are agreeing with that... but it's still a long and tedious battle.
It's strange but network TV in the early 90s was more liberated than it is now. NYPD Blue did some controversial content, language and nudity. You don't see that anymore. Again, that vocal minority...
End of the day, the shackles concerning content is only one reason network TV is dying. But it is one part of it, for sure.