It has been 5 years that i do not use any type of cable/sat TV service. the setup is a 50″ plasma with a mac mini hooked up, where i stream video content over the interent, to the home network to the wireless router to the mac to the tv to the surround sound system. sites like hulu, youtube and netflix have been the dominant ones that controlled our living room.
below is a good list of other ventures entering this arena. i agree 10% that the DVD is long dead and that streaming is the answer. there are some requirements in terms of hardware and network, and with the wonderful work done by the studio (take hulu for example) we can all expect more wonderful, low-cost services in the near future.