No, what would have and should have happened is to buy up the Expos and move them to DC and let Agnelos fume. The Orioles have no rights over DC, especially for a team in a different league. His lawyer mouth may have said so, he may have thought so, but he had - and has - zero claim over the DC market, especially for a National League team.
But yeah, Selig sold out the area and gave Angelos a piece of the pie vis-a-vis MASN. We'll all see how arbitration goes but I don't think there's a remote chance that the Nats TV deal will be as good as if they were free to negotiation with Comcast, Root or Fox on their TV rights. Maybe I'm wrong, and if MASN agrees to a deal similar to San Diego, Houston or any of the other recent deals, then fine, at least the Nats are getting paid fairly out of it. But the fact will remain that Angelos owns MASN, and has locked up the TV rights to a baseball team that he does not own.
Basically, from a TV revenue perspective, the Nats are vassals to Angelos. They can only deal with his network, and he'll earn a profit for doing nothing. And, a profit he simply doesn't deserve to have.