I think the problem is that Dish started to take the hare's approach (as in the Tortoise and the Hare). They got so far out ahead in terms of HD offered, technology, transponder licenses, and price, they fell asleep, allowing Directv to pass them. But all is not lost yet.
Here's my suggestions. Some of these have been bantered in this thread before:
1: Simply everything: Packs and technology. There should just be 4 packs (much like they had in the pas, and are still around now in some respects), "Family" and 3 regular tiers. They should include locals and DVR fee. Add $10 for HD access for your back, including the HD only channels. No other fees, aside from premium channels. Forget HD only packs. These will soon be pointless, as most big networks will be available in HD.
As for technology: Go to 5 receivers: 211/222 for single/dual tuner non DVR (SD and HD), 612/622 for SD DVR/HD "ready" DVR, and the 722 for an "enhanced" HD DVR (for all those that sign up for HD off the bat or want to upgrade). This would also have the advantage of starting the MPEG4 transition, and get everyone HD ready (aside from a new dish).
And, of course, the prices need to beat Directv and Cable.
2: Improve customer service. Fire everyone in India and the Philippines and hire Americans. Have monthly training sessions to keep them informed. If CSRs we capable and properly informed, they could probably reduce call volume and thus staff to pay for the change.
3: Get a plan for being able to carry 250 National HD channels, including RSNs and 50 or so being of a higher picture quality (full resolution for more popular channels). Ka/FSS/BSS, whatever other acronym it takes, do it.
4: (Most importantly) Get better marketing. Fire whoever does it now. Honestly, I picture their marketing department like this: "Cousin Cletus, ya' know who's funny?" "Who Larry?" "That Frank Cal-ando guy. He does a funny impression of that Dr. Phil." "Oh yeah, I heard a' him. Hey, how 'bout we hire him to do our commercials?" "Cool idea, Cletus."
Where to start? More engaging commercials that stay on message for one. If they apply the other suggestions, they can start there. Directv made big inroads by bragging about their capacity even when they only had 8 channels. Dish can do the same.
And one more thing (5): Bury the hatchet with Fox, Viacom, and Rainbow. The last one might be hard, but those 3 provide some of the last remaining mainstream HD channels not yet carried. The kind of channels some will go to Directv to get if they are not on Dish.