I look at it this way: I can pay $100+ a month to watch cable TV with commercials or I can pay $9 for Netflix, $8 for Hulu Plus, and nothing for my TV antenna for local shows. Yes, the ads on Hulu Plus are annoying, repetitive, and can't be skipped. But, I grew up in the 70s and 80s and have developed the skills to cope with ads and the lack of time shifting for local news. Millennial's milage may vary...
The problem is, how much of that $100 is your internet bill? Adding the TV channels to my Comcast bill added ~$30/mo to my bill, and that included all of the sports channels we would use (e.g. ESPN family, B1G, Tennis Channel, &c.) as well as HBO. Granted, we used a cablecard w/ an HDHR unit to avoid another $20-$30/mo and the headache of using their DVR (why the hell can't it output the video in a fixed format instead of switching between 480P/720P/1080i when channel surfing???), but spending $30/mo for TV at home was much cheaper than going to the bars to watch the same games.