Jeremyp, as someone who has attended the Last Night of Proms on at least four occasions (long, long ago in the time of Malcolm Sargent) I agree with you 100%. It is a party and you can't have a party without people.
I think that the Beeb is running scared. Why, I don't know. The BBC organises the largest music festival in the world largely devoted to European art music (sometimes called "classical"). it features the world's best exponents of that kind of music - orchestras, choirs, conductors, soloists, vocalists - in a substantial part of the genre's repertoire. It provides opportunities to hear music from other genres, too. (Who knows, they may also be considered "classical" in 50 years time.) It has low admission charges and broadcasts every single concert. This is a huge achievement. The BBC should be proud of what it does, not defensive.
The silliest statement that I have heard is that "an orchestral arrangement" of Land of Hope and Glory willbe played. WTF is wrong with Edward Elgar's Pomp and Circustance March No 1?