It might. But currently you pay the license fee each year, and it's one license per household. So if it gets bundled in the price of the receiver then you're changing the price model - now if you buy a TV for a spare room you're paying the license fee again, and if you replace your TV earlier than the average you lose out, if you keep your TV for longer than average you win.

I expect it could be made to work, but I have no doubt people would complain about it. And the license fee is not a pure private contract - there is government involvement (hence all the political arguing about whether the BBC should be allowed to increase the fee or get rid of the exemption for senior citizens). So if there's a big change that lots of people complain about then it might be blocked for political reasons even if it actually makes sense over all.