We moved to a new house about a year ago. In the process we left our TV in the old house for "staging" which meant it was there for 6 months (it's hard to sell a house now, apparently). In the mean time we watched a ton of Hulu and Netflix instant shows on our 15" computer. This has been relatively glorious.
Cutting the Cable TV cord
With the TV in the old house and our computers in the new we moved our high-speed-internet service (delivered by Comcast over cable) to the new house but shut off the TV service. Luckily Hulu and Netflix ably filled in the gap. We're watching weird and great shows, documentaries, and even adver-tainment like the Ford Focus Rally (although having to endure commercials in the middle of adver-tainment grated on our nerves enough that we stopped).
Hulu has a rolling schedule where they drop content. We can't see old episodes of the Chicago Code (our favorite new show). In a year or two, though, they should be on Netflix. It seems like every day Netflix gets more and more instant content. Amazon's got some instant offering, but we haven't run out of content on Netflix+Hulu enough to worry about what Amazon might have for us. I would love for the BBC's Junkyard Wars to be opened up on Hulu or Netflix. Right now it's making zero money from the American market - why not let it out? So it seems like our TV watching needs will be fulfilled by on-demand media delivered by Netflix, Hulu, Amazon and companies like them.
So long, physical media
We have several bookshelves and boxes full physical media: books, journals, magazines, CDs, DVDs. Our TV is currently used primarily to watch DVDs. But the transition is clear: even though high def TV with surround sound is fun, the immediacy of on-demand video media wins. If nothing else it means we can eliminate about one quarter of the furniture in our house since it is designed strictly for holding and showcasing our physical media!