I truly don't believe that's true in every case. I happily accept there are those who don't use any BBC services but feel they're a very small minority.
I would favour a Pay Wall.
The few people I personally know - including me - who boycott the TV licence genuinely dont watch live tv or the player.
After all, it was crap enough that I didn't want to pay to watch it so,how would being free make it any more palatable?
Im a radio fiend, watch very little on screen but the wireless is on from the moment I arise until I walk up the wooden hill to Bedfordshire.
What little on screen I watch is almost all Paramount+ with a little ITV and U player. Mrs D prefers Prime and Mini D has Disney+. We dont mind paying for stuff we're actually likely to watch, and as we were disinclined to watch the BBC we stopped paying for it.
No politics, no statement of ideology, we were simply not using it so binned it off the same way me might an old magazine sub or gym membership.