Sinclair has painted itself into a corner. The whole purpose of amassing all those locals was to use those shear numbers as clout to force Dish (and others) to pay exorbitant fees to continue to carry them so it has put itself in a position where it almost can't back down. The problem is they picked on the wrong guy, possibly the one person in the entire industry who actually plays hardball. This'll be interesting, Charlie doesn't have to back down and Sinclair can't (but, IMHO, they will eventually have to or end up in Chapter 11).
If I were Dish I'd let it ride and here's why, locals are a PITA. Not everybody wants them and very few, if any, are willing to pay double or triple. The business of managing providing locals is, at best, a break even undertaking and logistical nightmare. I have believed for quite a while that Dish would just a soon stop carrying them altogether. As time progresses the end user (not everyone but the majority) has more and more options available to get the locals. Given all that, I believe Sinclaire made as big a mistake as AT&T did when it bought DTV and the results are going to be very similar.