And, IMHO, the watching of videos means the equipment is installed and
therefore requires a licence. End of story.

I really don't follow this. If I want a TV for watching DVDs and/or
playing games, and that's all I want to use it for, I can't for the life
of me understand why I should pay a license fee!

You don't. End of story. Anyone who thinks a detuned television or video
with no aerial requires a licence is simply incorrect. From the horse's
mouth:

http://www.jifvik.org/tv/tvl2.jpg
http://www.jifvik.org/tv/clp.gif

Christian.