We had cable, but it was expensive (over $100 monthly) and we realized we hardly ever watched television. I actually stopped watching tv all together back in November of 2007. Just started watching it again this year (I think around April or May). I only have 3 shows I like: Wipeout, Bob's Burgers, and Louie. Since those 3 are streaming from Netflix and Hulu we cancelled our cable.
Netflix and Hulu run us less than $10 each. We are saving $80 a month and get to watch movies too. Much better than cable for me.
I also just signed up with Blockbuster's service. I like that you can rent movies and video games from them.