Regarding the rate increase this is my theory:

The dish network/directv merger was going to happen for many reasons, but mainly to combine the equipment so they could free up satellite space and then broadcast the local channels.

The justice dept didn't allow (in my opinion because they are all in bed with the cable lobby), so now both directv and dish are faced with launching a ton of satellites to get the local channels.

I like to think that they will both raise rates, launch the equipment, have killer HDTV, crush the cable companies and when both companies get flooded with new customers they will probably drop prices (like everything else when it sells big) and add another package to the top for HDTV only or internet + TV or something like that. I bet the basic rates we had until now will be seen again.