Well here is my exact setup now that everything is done. . . .
Before Apple TV:
Dish Network - $50/month (with DVR)
Netflix - 9$/month
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$708/year
After Apple TV:
1) I downgraded my Dish Network to local channels only so I can have quality local channels instead of crappy DTV stuff. Plus I get to keep my DVR to record shows. Downgraded to $17/month, You can either do this or downgrade to Comcast Basic Cable (local only + Discovery channel)
2) Netflix - 9$/month works great on the new Apple TV
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$396/year
I saved 708-396 = $312 yearly.
Thanks very much for posting these examples, everyone, especially the original poster! This thread inspired me to try something similar. Here's what I did:
Before:
Had Dish Network "Top 200" package for $55/month + $6/month DVR service + $6/month "service plan" (for tech support, I guess) + $11/month Netflix 1-Disc with Bluray =
$79 / month = $948/year .
Now:
Dropped down to Dish Network "Welcome" package for $15/month + $6/month DVR service (dropped the "service plan") + $11/month 1-Disc with Bluray =
$ 32 / month = $384/year.
This "Welcome" package is NOT advertised at all on the Dish Network website or anywhere. I only found out about it by seeing this thread and looking around on other message forums on the web. Apparently this welcome package is a method Dish network uses to avoid losing customers: people have been cutting back expenses due to the rough economic times, and this ultra-lightweight package allows them to stay on as customers. Anyway, here's the list of channels that are on this package:
AMC
Bloomberg
Boomerang
Comedy Central
CMT
Discovery Kids
Food Network
Hallmark
HGTV
The History Channel
Home Shopping Network
MSNBC
MTV2
Oxygen
QVC
Shop NBC
TBS
TLC
WE
Weather Channel
+Local channels (varies by locality, but includes all major network affiliates)
I had my wife write down all the shows she watched, and we realized the vast majority of the stuff we watch is from network channels (ABC, CBS, NBC, FOX). Most of the other stuff is covered by the channels on the welcome package (comedy central for Daily Show, AMC for Mad Men, Food Network, TBS for the new Conan show when it comes on, etc.) The only thing my wife watches that we don't get on this welcome package is Lifetime for Project Runway and that *$%&! kathy griffin show, so she'll just buy those on iTunes and stream them using our new

TV once per season. As for me, I have resigned myself more and more to wait until the rest of society tells me a show is good and worth watching, and then go catch up on it via Netflix disks, Netflix streaming, re-runs, or iTunes if necessary. Used to watch a lot of mythbusters, but those don't need to be timely, and all the past seasons are on netflix streaming now. We have a 6 month old son who will need kids programming once in a while, but that will be available through local PBS and TONS of kids content via netflix streaming (Dora, Blues Clues, Thomas the tank engine, etc.)
I priced out other options, like quitting Dish entirely and going OTA Antenna, but priced out over the next three years
DISH STILL CAME OUT CHEAPER. Here's why: If we went OTA antenna, we would need to buy a standalone DVR (or run EyeTV or something like that). EyeTV looks like a hassle, would have to be running all the time on our main computer (which takes processor time and resources I'd rather have for editing in iMovie and iPhoto and the like), and apparently is not easy to output to 2 TVs. For standalone DVRS that can handle OTA Antenna input, I only found Tivo as a good user-friendly option, and they are $300 at a minimum, plus ~$12/month into the future. Add in the cost of the antenna itself and any other equipment I'd need to buy to get it up and running (budgeted $100 one-time cost), and, while the monthly cost can indeed get lower than the $21/month for the Dish Welcome package (basically $12/month for Antenna/Tivo vs. $21/month for Dish with DVR), in order to get all the shows we want we'd have to buy/rent a bunch of them via iTunes (since OTA only gets you local channels), and the costs add up. (Yes, SOME could be watched free on the web, but that is a hassle to watch on our main TV and my wife would not put up with connecting up our main laptop every time she wanted to watch Project Runway, so streaming via iTunes/

TV is what is needed.) That puts the total cost over a three year period for going OTA as slightly HIGHER than just doing the Dish Welcome package and using iTunes for just a couple shows. (Antenna option is more expensive due to a combination of higher up-front equipment costs, and more shows needing to be purchased/rented via iTunes.)
The other big plus for doing this INSTEAD of going OTA antenna is that we get to keep our Dish DVR at $6 a month. (way cheaper than a TiVo since TiVo has a $300 up front cost and $12/month for service). Plus, our Dish DVR can output to two different TVs, allowing one person to watch something in one room while another watches something else in another room. TiVo can't do that (as far as I can tell), unless you get two units and two service plans, doubling all the costs. Yuck.