I ditched cable and upped my internet sub by $20 three years ago. I don't miss it one bit. I have a wife and four young kids. They were a bit miffed at first, but when I showed them all the options available to watch shows, they were all on board. I pay for Netflix, Hulu, and buy about $30-$40 in movies and shows a month from Apple, etc, and still come out way ahead. I also have the "family" HBO Go password, which helps. After all that I still come out about $120 or so ahead of what I was paying for cable.
I have an Apple TV for my primary TV and roku boxes on my others.
Cable subscriptions are a dying model. It is only a matter of time before it is all digital. Unfortunately, the cable companies are legal monopolies that control the system. There are plenty of companies working around it, but they face an uphill battle with litigation, etc. I predict that the TV landscape will be radically different in 10 years. The technology exists, but the cable companies won't adopt it because the model they have now is so profitable.