I totally agree. I've been on the unbundling bandwagon for years. I'd gladly pay, say a $10 basic service fee + maybe $2 per channel I pick. Hell, between my wife and I we're only interested in about five or six channels.
About a year ago my parents got rid of the landline they never used at their vacation home and my dad decided he wanted TV (CNN and ESPN specifically). The cable company offered him a $15/mo package with about 20 channels- half local broadcast stations and half crappy cable channels no one wants (QVC, Oxygen, MTV2 anyone?). To get his beloved news and sports he'd have to go with $60/mo package that came with 75 other channels he didn't want. Fortunately the broadcast networks carry most of the games he's interested.
My wife and I got rid of cable a few years ago for all the standard reasons and turned to Netflix, Hulu, etc. The only thing I miss is live sports. If anyone has a recommendation I'm all ears.