Why should a one hour ticket cost more than a single? (By single I assume you mean direct bus). Why give a special discount to people who travel on a direct bus? People whose journey involves a change are in greater need of an incentive, given the greater inconvenience.
We used to have the same problem in London. Instead of waiting for the direct bus we can now get on the first bus that comes in the general direction and change where necessary, without worrying about the fare.
By single I mean a fare for single journey as quoted in #20. If the fare is kept the same, the bus company loses revenue (as people will only need one single ticket instead of two, one for each leg of the journey. or a day ticket), otherwise they increase the price of a single ticket to compensate, in which case you will have passengers complaining that they are only travelling four stops so why has their fare gone up for a service they don't use. You can't please everybody.
A lot of Birmingham routes are radial so, if you are in town, there is no point going half way home as the bus you will have to wait for will have come from town in any case. There are some routes which aren't but they tend to be less frequent so the next one may not arrive within the hour. Also, there are a number of different operators - one main one and several others, including those that compete and those that travel in from adjacent counties - would the scheme involve them? All of this makes it more difficult to administer. I seem to remember there might have been such a scheme at one time (probably pre-NEx) but, if so, there must be a reason why it isn't about now, and I suggest that is simplicity.