I dropped it, and just go with MLBTV and NHL CenterIce for my sports (more than enough) and can watch any game, also ESPN3 streaming for random sports sht.
Netflix has all the good old throwback TV (Knight Rider, A-Team for example) and documentaries (I actually get to learn instead of veg) such as Ken Burns "Baseball", regular Hulu/network websites for other crap like Big Bang/South Park/Jon Stewart, and in the process of doing OTA DVR for the rest (NBA/NFL/College football). Amazon on Demand fills the time when I'm really really bored which is rare (and AoD is free for students btw). All I really miss is ESPN but I catch all the highlights online which is more time efficient by watching highlights of sht I only care about. Also, if there's a big game on cable that I REALLY care about, I'll go out to the pub to watch it with friends.
Movies, I can rent or buy on Vudu (HDX only, usually 19.99 but you own it forever in the Walmart cloud + closest to Blu-Ray you can get streaming) and for non-HD I just buy the Blu-Ray DVD for big names (that won't license to Vudu) such as Marvel/DC stuff (Dark Knight/Spider-man).
So total out of pocket per year is < 1/4 of cable. I have more time to do what I want and be more active (kept 15 lbs off since last Sept), eat healthier (cook more), and spend more time with family. I don't feel bad about dropping money to go out to the movies with my g/f (usually only do IMAX for blockbusters) with the money I've saved. RIP channel surfing and cable TV.
As an aside, it's rather ridiculous that Verizon FIOS is charging me $5/mo to NOT have a landline phone but their internet streaming is so rock solid (yes even on 15/5) that I put up with it.
Oh, also I use the nifty $80 Sony Blu-Ray DVD player (hard line, not wireless - that model is extra) for Netflix, Vudu, and AoD streaming. Haven't tried ESPN3 but it can do websites so I'll test it this weekend.