I guess it depends on what shows you actually watch, but we went the rout of an HTPC with tuner cards. It turned out that most of the shows my wife and I watch are either on local channels or available on Netflix, Hulu, or other streaming sources. We were paying $80 a month ($960 a year) for cable, I turned around and spend around $400 on an HTPC. It streams in HD on netflix which looks about the same as our cable did, local HD broadcast recordings look better than cable. Our monthly cost is our Netflix account or maybe a trip or two to Redbox, though we were also already using both when we had cable.
I agree that the cable TV industry as it stands is doomed. Our ISP (AT&T Uverse) is instituting caps next month. They give the usual bandwidth hogs line but it's very obviously to protect their cable TV business. We've already set up our cancellation date and scheduled the install of TWC. It's sad really because when we got AT&T they were (SHOCK!) excellent. They still were until the cap announcement, and we're sad to leave. I'd much rather be giving them my money than TWC, but caps are unacceptable to me personally, especially when being used for anti-competative measures. It's possible we'll be back... if TWC caps we'll be moving to Uverse Business class next. It's expensive but not as expensive as Cable.