They do seem to be rather nasty at sending letters out demanding payment and the people don't even have a TV. It seems like the attitude is that they don't believe that a household would not have a tv!
To the original poster though, you can pay by monthly direct debit which splits the cost up. You can then opt to just have an emailed licence! I've not gone that far, I still make sure they mail me it and I keep it somewhere safe, but then if the house is registered as having a licence then it's unlikely anyone will come to check - I've never know that.
It pays for the BBC rather than having telethons etc. There's often debate about whether there should be a licence or not, personally I think it's value for money....BBC1, BBC2, BBC3, BBC4, BBC News channel, BBC Parliament (where on Sundays you'll get some C-Span), the BBC childrens channels, the BBC radio stations etc.
But you need a licence to receive or record live TV broadcasts, so even if you don't watch BBC or you watch live online you need a licence.