I guess taking money from the BBC, to give to ITV for regional news is an easier sell than giving ITV extra money for it, I dont think people would like the idea that they are paying both a licence fee for the BBC, and money being given from general tax to ITV.
I do agree, they should let ITV sell some ads at there true value, im just not sure that it enough.
as for BBC Licence fee money going to ITV for regional news, if you have seen any of my posts across media websites, and my e:mail to the BBC Trust I am livid at the idea that ITV is getting money to do something that it should be funding itself, in a few years time ITV will get the Channel 3 Licence for £0, which gives me a VERY favourable EPG slot, and gifted space on which they have built there freeview offerings. On top of that they will also get money to make the shows that they are meant to make in order to keep the Channel 3 Licence, its like ITV is being paid to do once what it paid us to allow it to do.
If it were up to me ITV would loose the Channel 3 Licence, and I think the fact that ITV is doing everything it can to keep it, but get rid of the stuff they dont like about it, tells me is worth ALOT more to them then they are letting on.