I've been hearing quite a few people talk or write about how they do not have cable. We have gone back and forth with cable over the years. About a year ago we dropped cable once again because it is simply too expensive. We also realized that many of the shows we like are typically available on the Internet, so we really have not missed cable all that much.
Even though we do not have a text messaging package on our cell phones, we are somewhat on the cutting edge with our television set up. We have a TV tuner connected to our Mac Mini and we have a large flat panel monitor that allows us to get a good digital picture. The TV antenna connects to the TV tuner, so we can watch all of the local channels. For the shows we used to watch on cable, like Monk, Psych, and Burn Notice, we are able to watch them either on the USA Network web site or on Hulu. Hulu.com is a great resource for current and older television shows (like The Pretender). It is also a legal way to watch the shows. IMDB.com also provides links to legally available episodes of television shows.
For sports, we switched to DSL through AT&T so we can have access to ESPN 360. Many games are available as well as a variety of sports that I've never even heard of.
The final method we have used to replace cable is Netflix. Since we have the computer as our television unit, we can easily watch the movies and shows available online at Netflix.
It will be interesting to see what the future of cable will be with the way more and more shows are made available on the Internet.