I don't like not having an option either, but that's not a good argument since what they can sell it for is really what number of sales at what price. Presumably they would sell fewer at a higher, non-ad-subsidized price.
GP argues that they have no incentive to offer a non-ad-subsidized TV at a higher price, because consumers will for the large part not notice ad-(preference-)subsidization or otherwise consider it a factor in the decision to buy such a TV.