Mike, you were right, I should have read before making any comments. As I researched some more, it becomes clear to me Paxson and folks have no intention to bear the costs and transition to digital TV, at least in the current form. They therefore are taking a measured risk for a short term gain.
On the other hand, speeding the transition and allow wireless or any other new developments, is a legit objective of FCC. I think a fair offer would be to tax the "private sale" of the spectrum so that the public, who is the owner of the spectrum, gets its fair share.
Although in the hindsight, Congress should have mandated the digital transition with more teeth, such as digital tuner in every new TV sold, digital transmission on cable, etc. But in the current political environment, it is not likely to happen.
In fact if the Paxson's deal were to go through, the Congress would have all but conceited the failure of its grand digital TV plan.
The need for additional revenue will be so great that Congress may just take a significant step to make or break the digital transition.