Regarding ITV going for second picks, would it be worth their while? Take last season for example. With no English sides reaching the QF's last season at least ITV had the pick of games on Tuesday nights. Imagine if they'd only had 2nd picks through the QF's. And of course you can't show any of the Semi Final legs as they'd all be 1st picks by default, so again any package that denied them that would be massively flawed.
Last season ITV showed...
Group Stage
Real Madrid v Man City
Cluj v Man United
Man United v Braga
Man City v Ajax
Juventus v Chelsea
B Dortmund v Man City
Round of 16
First Leg
Celtic v Juventus
Arsenal v Bayern
Second Leg
Man United v Real Madrid
Barcelona v Milan
Quarter Finals
1st Leg
PSG v Barcelona
2nd Leg
Galatasaray v Real Madrid
Semi Finals
1st Leg
Bayern v Barcelona
2nd Leg
Real Madrid v B Dortmund
It's a decent line up of games, allowing them to show Barcelona and Real Madrid 3 times each and Bayern twice in the knock out stages to make up for lack of English involvement. It also allowed them to show the the only real mega tie of the competition that took place on English soil in Man United v Real, as well as big time group games like Real v Man City and Juventus v Chelsea.
Now, imagine the scenario if they only had (for example) 2nd picks on Tuesday nights. Their line up last season may have looked like this...
Group Stage
Montpellier v Arsenal
Nordsjaelland v Chelsea
Barcelona v Celtic
Schalke v Arsenal
Galatasaray v Man United
Olympiacos v Arsenal
Round of 16
First Leg
Valencia v PSG
Porto v Malaga
Second Leg
B Dortmund v Shakhtar
Schalke v Galatasaray
Quarter Finals
1st Leg
Bayern v Juventus
2nd Leg
B Dortmund v Malaga
Semi Finals
No games
So, basically, a pretty average set of Group Games, only one Man United game and then a group of knock out games that you'd imagine they may be forced to stick on ITV4. Not a single Barcelona or Real knock out game, no chance of showing any of the 2 English clubs games in the Last 16, and no Semi Finals.
When you think of 2nd picks as being okay and well worth bidding for, you may want to think again. For a FTA network to bid tens of millions of pounds for a set of games like that would be madness really. First picks are essential to ITV having CL games IMO. Anything less and they're not worth having for the money involved.