Cut cable in last June (2012) after getting fed up with cable prices. I also am using a Mac Mini with main HD flat screen (HDMI hook ups). I made an investment of about $800-$900 (which after 6 months has already been paid off, when compared to what cable would've cost me over that same time). With my 2 other TV's (kids TV's) I have hooked up Roku boxes. I have 2 monthly subscriptions- Hulu+ and Netflix (totallying $16 a month) and also got one of my Roku boxes with a deal PlayOn was having (when buying a lifetime license to PlayOn, got a discounted Roku box). I also purchased 2 indoor HD antennae (one for $20 & the other $30).
I get all of the Hulu+ and Netflix content on all TV's with Roku boxes, as well as PlayOn. The 2 TV's that have HD antennae's, get all the local channels of interests (and more, not so interested in, but basically the major networks).
With the Main TV (Mac Mini) I am able to go to network sites or other sites that have "free" downloaded, commercial free, episodes that I can't get through Hulu+, Netflix, or PlayOn (ex. Son's of Anarchy on FX).
The biggest obstacle has been live sports and DVR. The DVR issue, is more about "pausing" live stuff I get over my HD antennae, because all streams you can pause and are usually there for quite a while. Sports: well, a lot of what I like to watch is on HD antennae (college football, pro football, etc..), which by the way, both antennae's give me HD quality, and on main TV (Vizio, which came with a surround-sound unit) I get Dolby 5.1 surround-sound. I will even say this, the over the air HD is better than my previous U-Verse HD... and, I know longer need an "optical" cord for the Surround-Sound (wonder how the mysteriously happened) that is being fed through my HD antennae to my TV/Surround-Sound unit.
The sports I don't get through HD antennae, I can usually get on ESPN 3 (on Roku w/ PlayOn or a free ESPN login account). I have also found ways around getting access to things not on HD antennae or ESPN 3. Unfortunately, there really aren't that great of websites that offer Live sports content for free (as advertised) but what I have done is accumulated some email addresses and password from family members/friends to access such sites as ESPN (Watch ESPN), MLB.network, and NFL Sunday Ticket. My PlayOn license does allow me acces to ESPN 3 which does give some LIVE sports content, but things like MNF (Monday Night Football) is only streamed over the ESPN website (which I access through my main TV through my Mac Mini).
One idea I did consider was just purchasing a "SlingBox" and finding a friend or Family member that would allow me to piggy-back off their cable subcriptions, but I figured I'd be obligated to pay part of their cable bill and I didn't want to contiue paying cable companies. I would theoretically have access to that SlingBox with all my devices (iPad, iPhone, Mac Mini, etc...), but a lot of the stuff I am watching now, I also have access to on my devices (Hulu+, Netflix, MLB.network, NFL Sunday Ticket).
I like my set up, but TV is now what I call "appointment-TV". No more plopping down on the couch and surfing through channels, it's more about me knowing what I'm going to watch and then watching it. It works though, because honestly, everything I had watched the previous 3 years was somewhat the same idea, but with my DVR. My surfing is of the major networks through the antennae. I can tell you this, there are internet sites out there that "share" almost every TV episode you can think of (including Showtime, HBO, etc...) and they are free.
I no longer have a home phone line, but that's an easy fix as suggested with Magic Jack and other telephone companies. I did upgrade my internet service with AT&T, because I knew I would be streaming, and get a consistent 16-18 MBPS. My set up has also transformed my entertainment center (formerly my TV). With our Music (iTunes) and Pictures and Videos (iPad & iPhone), we are creating more family memories. My children are also using the "TV" from time to time to do research for school (got a wireless Keyboard and Mouse with initial purchase of set up). All is well, and I haven't missed anything... I have benefited from other family members or friends who don't use the internet to view content through their cable provider (although they have that access), but even if I didn't have that access I would say the biggest miss would really only be Live Sports not accessible through major networks).
Total Savings per year: a little over a $1000 a year.
Cable Bundle (with phone/internet) a little over $2,000 a year.
Streaming/Antennae/Internet: (after initial investment, that is already paid off after 6 months of not paying for cable): $950 (again, with internet/wife included).
I made one purchase of a series through iTunes (TV series): Then I figured out where to find that series for free! Probably won't have to pay for a series again in the immediate future (at least I hope).