I've actually canceled my cable, and I'm selling my 1TB modified HD TIVO. Between apple TV, and my PS3 connected to a PC media server I have everything I could ever want to watch, except live events which I don't watch anyway (TIVO).
I can watch the shows I love for a lot less on the apple TV then the $100 a month for HD cable plus cost of the TIVO, and I don't have to FF through the commercials. Renting movies works great as well, and I mix that with 'free' content I torrent which automatically shows up in the pc media server when it's ready.
I always have exactly what I want to watch, wither it's something I planned ahead to download, or quick browse through the TV and movie listings. For just surfing around I have a list of favorite podcasts such as 'TED', and other less cerebral fair. This is perfect when you need to kill 20 min while the wife gets ready to go out etc. And of course everything starts from the beginning, no landing on something interesting that's already 10 min in.
The only things I don't like are:
You can only buy TV programs and they take up space. (I don't mind buying, although advertising paid shows would be good too, but it won't take long for me to use up all the storage on the apple TV this can be mitigated with proper management from iTunes however.)
I wish it could connect to a media server so then the PS3 isn't even required. Add blue ray and I'm down to just the Apple TV.
Nevertheless the HD movie rental feature makes it worth the purchase price. I haven't had to mail a DVD or go to a video store for a year now.
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