With the likely significant decline in car use in the future though I expect there will be a lot more people who will have no choice but to pay the bus fares that the market commands. If anything I expect there to be more of a case for the deregulated system in the future (with some currently subsidized services becoming profitable) unless there is a significant political change.
There is a growing argument that car usage has peaked and has started to decline in many industrialised countries and not just because of the current economic climate (search for 'peak car'). Young people aren't that interested in private motoring compared to previous generations. That would imply that the deregulated model could be sustainable. But I wouldn't be surprised if more areas go the way of parts of Surrey with a total withdrawal of commercial services in the short to medium term. A massive growth in cycling would kill bus deregulation.