It seems sky have decided against this plan now.
News here- http://www.digitalworldz.co.uk/forums/showthread.php?t=115946
They will likely leave these channels on freeview for now and not invest in a terrestrial pay-tv system. The big loss of custom from virgin, the pressure from Sky News employees, the public annoyance of plans to destroy freeview are all to blame. Maybe ofcom had a private word before official licence applications and said- "you got no chance" lol.
Oh well. I wouldn't have missed Sky dropping off my freeview box anyway since I cannot receive the mux from where I live. Can't miss what I don't get. Not that I watch Sky 3 or Sky News on my freesat box anyway either.