The BBC is far from perfect (as with most large institutions), but personally I would prefer to pay for it through a license fee than not have it. Current Affairs, Drama and Science & Nature are generally all top notch.
What I would say however, is that I would not be averse to some content being part funded by selective advertising, in particular mainstream sports such as Football, Tennis, Golf, Cricket etc. Or shows which are highly lucrative e.g. Strictly, EastEnders, MasterChef/Bake off, Top Gear etc.
Whilst I know the non publicly funded channels are likely to be opposed to this, I don't see it as being any different to the BBC selling its content to the US TV stations, Netflix or earning revenue from Britbox.
Assuming they don't spend the savings on celebrities (yes I know it's a drop in the ocean relative to the BBC funding issues but still galling none the less), it would then allow the BBC to focus more of their public funds on producing niche content.