If the options of paying cash on board is retained; then we should nevertheless expect some degree of premium (or otherwise expressed, a discount for off-board ticketing). This is very common, and does not appear to generate much in the way of consumer resentment.
But underlying this question is a the wider issue that the whole exercise of reversing deregulation in GM rests on radically expanding ridership. There are two components to this expansion: the introduction of limited-stop, premium seating, express, longer distance, bus services - which TfGM intend to badge and brand as Bus Rapid Transit; and the expansion of stopping bus ridership, primarily through integrated ticketing and removing predatory priced penal fare levels for users other than regular weekday riders. But these two markets - longer distance BRT riders and shorter distance stopping bus less-regular users - do not necessarily have common interests or aspirations. The BRT market is driven primarily by improved service comfort, speed and reliability; fare levels are of secondary importance, as generally such users are comparing against daily commuter car costs (petrol and daily parking costs) and these are typically far higher than daily BRT fares. But stopping bus users tend to be much more incentivised by price; and less by time saved or comfort. For the former market, eliminating on-board ticketing is a strongly positive move; for the latter market it is more likely to be seen as negative.
I think this is largely going to be a matter of timing. If (as they both did last April) First and Stagecoach increase fares for M-ticket users by double inflation, and for traditional cash users by triple inflation, then that can only be described as a premium for non iPhone owners/users, not a discount for those with iPhones. Now, if we are talking about a situation whereby the average 2 mile bus journey that now costs £2.50-2.70 (cash), being reduced to say £2 cash (ie. I nice easy, single coin transaction) or £1.80 off-bus by whatever means, then that is a discount.
I am also interested to note that the "re-regulation" exercise (whether through Franchising or not) forsees an increase in both BRT and stopping services. This sounds very promising, although it would be interesting to see what happens in practice in terms of socio-geograhical coverage and "comfort" on normal stopping services.
The latter is simply the expectation that current standards of seating are maintained provided that cushions are replaced more frequently than at present (which seems to be once, if it all in a buses entire lifespan). Though, as an aside, I don't understand why modern bus (and car, for that matter) backrests need to curve inwards bending the spine forward.
As regards coverage, you mentioned earlier that BRT is more for identified routes from higher car ownership areas (eg. south Stockport) to Employment hotspots. Hopefully, the improved (or maybe restored would be more accurate, for those of us around before 1986) will mainly be for the low car-ownership areas.