It's an entertainment industry. The relegation battle is 10 times more exciting than the top this year. If you take away relegation we are left with a much less interesting package.

If we expand to 16 teams the sky money will be diluted and clubs will go bust

Only if you assume a zero-growth model, which is the last thing we should be assuming.

I don't think that we should expand to 16 (or indeed 14 for that matter) because I don't think we have enough talent to maintain the quality of competition, but "clubs will go bust because they aren't increasing revenue from other income streams" is the last reason why we shouldn't do something to improve the sport.

What do we think will happen when the Sky money is lowered next contract time?

Then I'd give Sky Sports Arena a wide berth, tonight.

That's the biggest issue for me, there's not enough talent in today's competition, compared with say 5 years ago, and it's light years away from 10 years ago.
If we get any increase on the previous TV deal it will be a huge relief, as they're (and the customer sat in front of their TV sets) paying for an inferior product.