The story I've heard on the dubbing is that the Portuguese movie and tv industry, representing such a small market (and not wanting to use Brazilian Portuguese dubbings because of the huge differences between the two) did not have the financial resources to do the dubbing. So they just went with subtitles. And now it's well accepted and there appears to be no interest in changing the system.
I do know a lot of Portuguese people of many different ages who speak French in addition to English, but English is certainly the more popular and more commonly spoken. In fact, when I'm in Lisbon, I have to really fight to try to practice my portuguese. I now have a well practiced introduction in Portuguese that I use in banks, airports, train stations -- "I know you speak English well, but I would really like to practice my Portuguese, is that ok with you?" That inevitably produces a smile and a lot of goodwill, because the Portuguese people are not used to foreigners who try to speak their language. So a few phrases could go a long way in interpersonal relationships, I think.
Laurie