A good point. The reason for so many repeats and cheap shows is that the BBC spends less proportionately on entertainment shows than other broadcasters.
If the BBC wishes to thrive it needs to address this. A workforce of 20,000 people, overlapping departments*, a large middle management etc means they don't have the funds to spend on programming.
*Multiple news departments, multiple sports department for example. When there is a government press conference the BBC will send multiple crews instead of just 1. Football matches are regularly covered by multiple crews e.g. 5Live, local radio, BBC online etc.
In fairness the new DG is well aware of the duplication and is trying to eliminate it much to the disgust of the staff.