My own setup:
Sony Netplayer with subscription to Hulu Plus at $8 a month. 1/10th what I was paying for cable, and I get The Daily Show, Colbert, Korean dramas, Criterion collection movies, and tons of other stuff.
Wall mounted indoor antenna.
A DVD recorder with a hard drive for recording off the air programs. I can play them back from the hard drive or edit out commercials and burn to DVD.
A Mac mini with Eye TV. I can convert the recordings to MP4 and save them.
I'm getting more and better entertainment than I ever did with cable, and it's cheap!