At the moment, with the traditional (analogue) television system you can get 1 television station per 1 UHF channel (allocated frequency). This limits the total number of stations available to about 40.
You will not be able to receive 40 because of the way that the channels are allocated (to avoid interference). You can only get about 8 stations in each transmitter area.
Digital transmissions are encoded in a way that enables up to 6 tv stations to be carried on each UHF channel (frequency). Also, the risk of interference between transmitters is lower. This results in about 40 total available tv stations Plus loads of digital radio stations per transmitter area.
The Freeview boxes are more than simple tv tuners. They contain some clever mathematical crunching circuitry that decodes the incoming signal into all the channels + the electronic Programming Guide (EPG). They also enable you to listen to digital radio through your tv set.
That's why "they" keep on about "you" having more choice.
Unfortunately, the choice is mostly between Repeats. But since when have we the viewers mattered?.
The UK will be abandoning analogue television broacasting and replacing it with digital televsion in a staged process. It will be done by current ITV regions and will be completed by 2012.
You do not necessarily need a new television set. But you will need a tv with Freeview tuner, or an external Freeview box with your existing set, by the time your region is converted or your screen will be blank.
I hope this helps. More details are availble on the BBC link below. In case you're wondering - there is not any HD TV transmitted on Freeview. If it happens then it won't be before 2009.